April 2026 is shaping up to be the most significant month for workforce compliance in years. Multiple regulatory changes are converging - Joint and Several Liability, the Fair Work Agency launch, threshold changes, Making Tax Digital - and keeping track of what happens when is becoming a challenge in itself.
This guide consolidates every key date for contractor-engaging businesses in 2026. Bookmark it, share it with your compliance, finance, and procurement teams, and use it to plan your preparation.
January 2026
31 January - Self Assessment Deadline
What: Online Self Assessment tax returns for the 2024-25 tax year must be filed and any tax owed must be paid.
Who is affected: Contractors operating through PSCs, sole traders, and anyone with untaxed income. Also relevant for businesses with directors who file personal returns.
Action required: Ensure returns are filed and payment arranged before deadline. Late filing incurs automatic GBP 100 penalty.
March 2026
3 March - Spring Forecast
What: The Chancellor delivers the Spring Forecast to Parliament.
Expected outcome: Treasury signals point to a tax-neutral statement with no further contractor tax changes. This provides stability after the 2025 Autumn Budget changes.
Action required: Monitor announcements but do not delay April preparation waiting for this. The regulatory landscape for April is already set.
April 2026
The critical month. Multiple changes land simultaneously.
6 April - Joint and Several Liability Commences
What: New Chapter 11 of ITEPA 2003 comes into force. If an umbrella company fails to pay correct PAYE/NICs, liability can transfer to the recruitment agency and ultimately to the end-client.
Key detail: There is no "safe harbour" - due diligence does not eliminate liability transfer.
Who is affected: Any organisation engaging workers through umbrella companies, directly or via supply chain arrangements.
Action required: Map umbrella exposure before this date. Understand where workers flow through umbrella arrangements and assess concentration risk.
6 April - Fair Work Agency Launches
What: The new Fair Work Agency begins operations as part of the Employment Rights Bill. This is a single enforcement body for employment rights and compliance.
Powers include: Authority to inspect premises, enter and review computer records, issue penalties for non-compliance.
Who is affected: Umbrella companies, recruitment agencies, and end-clients with contractor workforce.
Action required: Ensure documentation and processes are in order. The FWA will have powers to request evidence of compliance.
6 April - Small Company Threshold Changes Announced
What: New thresholds for small company classification take effect. Turnover threshold rises from GBP 10.2m to GBP 15m, balance sheet from GBP 5.1m to GBP 7.5m.
Important caveat: Most companies will not see the practical effect until April 2027 due to how company size is assessed against previous accounting periods.
Who is affected: Companies near the threshold boundaries (~14,000 companies expected to be reclassified).
Action required: Do not change IR35 processes yet. Continue current practices through 2026-27. Assess your status for 2027-28 planning.
6 April - Making Tax Digital for Sole Traders and Landlords
What: MTD for Income Tax Self Assessment becomes mandatory for sole traders and landlords with income over GBP 50,000.
Who is affected: Primarily contractors operating as sole traders (not through limited companies). Also relevant for employees with significant rental income.
Action required: If you engage sole trader contractors, they may need to comply with quarterly digital record-keeping. This could affect their administrative capacity and costs.
6 April - Business Asset Disposal Relief Rate Increase
What: Capital Gains Tax rate for Business Asset Disposal Relief rises from 14% to 18%.
Who is affected: Contractors selling or closing their PSCs, business owners planning exits.
Action required: Contractors considering company dissolution may want to complete this before April to benefit from lower rate.
17 April - First JSL-Impacted Payday
What: For workers on monthly pay cycles paid around mid-month, this is likely the first payday falling under JSL rules.
Key detail: Work performed in March 2026, if paid on or after 6 April 2026, falls within JSL scope. The rules apply from the payment date, not the work date.
Action required: Your umbrella exposure mapping should be complete before this date. Any issues identified in March still create liability if payment falls in April.
April 2027
6 April - Small Company Threshold Changes Effective
What: This is when most companies will see the practical effect of the threshold changes announced in April 2026.
Who is affected: Companies with accounting periods ending between 30 April 2026 and 31 March 2027 will assess their size against the new thresholds for the first time.
Action required: If you expect to be reclassified as "small", plan your transition from full IR35 processes to the simpler exempt regime. If you expect to remain medium/large, review how supplier reclassifications affect your supply chain visibility.
Preparation Checklist by Deadline
Before 6 April 2026
Map umbrella company exposure across your organisation
Identify all workers flowing through umbrella arrangements (direct and via suppliers)
Assess concentration risk - what happens if a single umbrella fails?
Review supply chain contracts for labour visibility clauses
Document due diligence processes (they matter even without safe harbour)
Prepare for Fair Work Agency information requests
Before April 2027
Assess your organisation against new small company thresholds
Identify suppliers who may be reclassified
Review contracts with suppliers near threshold boundaries
Plan process changes if your organisation will become exempt
Consider visibility requirements even if suppliers become exempt from formal IR35 processes
Key Takeaways
April 2026 is the critical month - JSL, Fair Work Agency, and threshold announcements all land on 6 April
Threshold changes are delayed - Announced April 2026, effective April 2027 for most companies
JSL has no grace period - Payments made on or after 6 April fall within scope, even for March work
Spring Forecast is expected to be neutral - Do not delay preparation waiting for 3 March announcements
Visibility is the foundation - You cannot prepare for changes affecting workers you cannot see
Bookmark this page and share it with your compliance, finance, and procurement teams. The organisations best prepared for April are those who started mapping their workforce visibility in January.
