Although the 2025/26 tax return looks familiar, there are several areas where taxpayers are increasingly being caught out.
One of the most notable changes is the Winter Fuel Payment clawback, which may create an unexpected tax charge for higher earners.
In addition, a range of smaller income sources are becoming more visible and more significant. These include:
- Bank and building society bonus payments
- Referral and switching incentives
- Platform or “side hustle” income
Individually these may seem minor, but combined they can push taxpayers over key thresholds—triggering higher tax rates or additional charges.
Capital gains are another key risk area. With the annual exemption now reduced to £3,000, many more individuals need to report disposals for the first time.
Finally, taxpayers should be aware of payments on account, which can significantly increase the amount due in January if tax liabilities rise.
Accuracy and completeness are critical. Taxpayers should ensure all income streams are captured, review their position against key thresholds, and prepare for potentially higher payments than expected.