Bank of England Holds Bank Rate at 3.75% — But the Vote Tightens
The Monetary Policy Committee voted by a majority of 8-1 on Thursday to maintain Bank Rate at 3.75%. The single dissenter backed a 0.25 percentage-point rise to 4% — the first hawkish dissent in three meetings, and a clear shift from the unanimous holds earlier this year.
The Committee acknowledged that the Middle East-driven energy spike means CPI is likely to sit between 3% and 3.5% through Q2 and Q3, but stressed that monetary policy "cannot influence energy prices" and will be set to return inflation sustainably to the 2% target. The next MPC decision is on 18 June. Mortgage swap rates barely moved on the announcement; market pricing has shifted modestly toward a hold-and-hike profile rather than the hold-and-cut path priced in March.
Source: Bank of England — April 2026 Monetary Policy Summary and Minutes
HMRC Warns Landlords Over Hybrid LLP Tax Schemes
HMRC issued a fresh public warning on Wednesday aimed at landlords being sold a structure marketed as a way to sidestep the Section 24 mortgage-interest restriction. The typical arrangement transfers properties into a Limited Liability Partnership with a corporate member, then allocates profits between the individual landlord and the company in a way that claims to deliver corporate-style mortgage-interest relief.
HMRC's position is that the schemes already breach the mixed-member partnership rules in ITTOIA 2005 s850C — which reallocate profits back to the individual where there is no genuine commercial reason for the corporate share. Landlords who have used these arrangements "could end up paying more tax than they tried to avoid, along with interest, penalties and high fees", and HMRC is urging affected taxpayers to withdraw and settle. If you have been pitched one of these structures, the right next step is independent tax advice — not the scheme promoter.
Source: ICAEW — Tax news in brief, 28 April 2026 | Related: Employed and Self-Employed at the Same Time
Umbrella Company PAYE Liability — Three Weeks In
The new PAYE rules for labour supply chains involving umbrella companies took effect on 6 April 2026 and are now bedding in. Under the regime, the recruitment agency at the top of the chain — or the end client where there is no agency — is jointly and severally liable with the umbrella for income tax and National Insurance on payments to the worker. HMRC can pursue either party for the full amount.
If you are a contractor working through an umbrella, your pay packet does not change — the liability sits with the businesses up the chain. If you are a small business using umbrella workers directly with no agency in the middle, supply-chain due diligence is no longer optional. HMRC has confirmed the rules apply to all payments made on or after 6 April, and the next Employer Bulletin is expected to detail enforcement priorities.
Source: GOV.UK — PAYE rules for labour supply chains involving umbrella companies | Related: Sole Trader vs Limited Company
Cash ISA Rates Hold Above 4.5% After the BoE Pause
With Bank Rate parked at 3.75% for at least another seven weeks, the savings market has stabilised. The best one-year fixed cash ISAs were paying around 4.65% at the end of April, two-year fixes around 4.56%, and easy-access ISAs cluster in the 4.31% to 4.51% range. Real terms, given 3.3% CPI, that is roughly 1.3 percentage points of inflation-beating return on a fixed product.
Two practical points worth bearing in mind. First, the £20,000 ISA allowance for 2026/27 resets on 6 April each year — using it earlier in the year captures more compounding. Second, this is the final tax year before the under-65 cash-ISA cap drops to £12,000 in April 2027, so a fixed-rate product locked in now keeps the full allowance working at the higher rate.
Source: MoneySavingExpert — Best cash ISAs | Related: Bed and ISA Guide
Key Dates
31 May 2026 — P60 deadline. Employers must issue P60s to all employees for the 2025/26 tax year. Also the final day for sole traders to use HMRC's online service to retrieve their overlap relief figure.
18 June 2026 (Thursday) — Next Bank of England MPC decision. Bank Rate currently 3.75%. After Thursday's 8-1 hold, market pricing leans toward a second hold but with a non-trivial probability of a quarter-point rise if the May CPI print stays elevated.
6 July 2026 — P11D deadline for 2025/26 employer benefits-in-kind, for any employer not signed up to payroll BIKs.
7 August 2026 — First MTD quarterly update due for sole traders and landlords in scope from April 2026, covering 6 April – 5 July 2026.