The Autumn Budget 2026 in a nutshell
The Chancellor delivered the Autumn Budget 2026 on 28 October, and the good news first: the headline rates of Income Tax, National Insurance and VAT haven’t gone up, and Corporation Tax stays at 25% (19% for smaller profits).
The Captain’s Brief: most of the changes land from April 2027. Landlords pay more tax on rental profits, business owners planning a sale get less Business Asset Disposal Relief, capital allowances are reshuffled, wages rise again, and smaller shops, pubs and cafés in England get a welcome cut in business rates.
Here at CF Accountancy Services in Tamworth we’ve been through the Budget documents so you don’t have to. Below are the points that matter most for small business owners, sole traders, landlords and company directors, and what you might want to do about them.
What the Budget means for your business
Capital allowances: buy new, and think about timing
If you’re planning to invest in equipment, the timing of that purchase now matters a little more.
- First-year allowance up to 50% for main-rate plant and machinery bought on or after 1 January 2027 (up from 40%). It covers new assets only, so not cars or second-hand kit.
- Writing-down allowance cut from 14% to 12% from 1 April 2027 for companies (6 April 2027 for sole traders and partnerships). This applies to your existing pool too, so relief on older assets comes through more slowly.
- Full expensing for companies buying new plant and machinery is unchanged, and the Annual Investment Allowance still gives 100% relief on the first £1m a year, so most small businesses won’t feel much difference.
Business rates: a boost for high-street businesses
From 1 April 2027, small retail, hospitality and leisure businesses in England (think shops, cafés, pubs and hairdressers) get more generous Small Business Rate Relief:
- Full relief up to a rateable value of £18,000 (up from £12,000).
- Tapered relief up to £21,000 (up from £15,000).
The Government estimates around 70,000 more businesses will pay no business rates at all. Pubs and live music venues also get extra relief, while vape shops are excluded. If you’re on a Tamworth high street, it’s worth checking your rateable value now.
Wages and payroll
- National Living Wage (21 and over) rises from £12.71 to £13.21 an hour from 1 April 2027.
- 18 to 20 year olds rise from £10.85 to £11.27 an hour.
- Mileage: the 55p rate for the first 10,000 business miles stays, and the rate above 10,000 miles goes up from 25p to 35p from 6 April 2027.
- Payrolling benefits in kind becomes compulsory from 6 April 2027 for company cars, fuel, vans and medical cover, so P11Ds for those will disappear. Make sure your payroll software is ready. Our payroll service can take care of this for you.
- Salary sacrifice pensions: as previously announced, contributions above £2,000 a year lose their National Insurance saving from April 2029.
VAT and HMRC admin
- The VAT registration threshold stays at £90,000.
- Online marketplaces will be responsible for VAT on sales by UK sellers from October 2027.
- Direct Debit will be required for VAT and PAYE from April 2029, and Self Assessment payments move to more regular in-year payments from the same date.
- HMRC is getting £70m extra funding and new “customer correction notices” from April 2028. Translation: tidy books matter more than ever.
What it means for you as a business owner
Landlords: a bigger tax bill on rental profits
This is the big one for property owners. From 6 April 2027, property income gets its own tax rates in England, Wales and Northern Ireland:
| Taxpayer | Rate on property income from April 2027 |
|---|---|
| Basic rate | 24% |
| Higher rate | 44% |
| Additional rate | 49% |
Relief on mortgage interest rises to 24% to match. If you hold property personally, now is a good time to look at whether your structure still makes sense.
Selling your business? BADR is halved
The Business Asset Disposal Relief lifetime limit falls from £1m to £500,000 for disposals on or after 6 April 2027. If a sale or retirement is on your horizon, talk to us early, as there are transitional rules for contracts signed before that date.
There’s also a new Founders’ Relief from April 2027, taxing qualifying gains at 10% up to a £10m lifetime limit. The conditions are strict, and the details are still out for consultation until 30 November 2026.
Sole traders and side hustles
- The trading allowance triples from £1,000 to £3,000 from 6 April 2027. Earn under £3,000 from a small sideline and you won’t need to report it through Self Assessment.
- Income Tax thresholds stay frozen until 2031, so more of your profit drifts into higher bands as it grows.
Company directors
- Dividend tax rates of 10.75% (basic) and 35.75% (higher) already apply from April 2026, so it’s worth revisiting your salary and dividend mix for 2027/28.
- HMRC can now seek to disqualify directors for up to five years for certain tax security offences from April 2027. Keep on top of VAT and PAYE payments.
Making Tax Digital
No change to the timetable. MTD for Income Tax applies to sole traders and landlords with income over £50,000 from April 2026, over £30,000 from April 2027 and over £20,000 from April 2028. The Budget confirms no late submission penalty points for quarterly updates in 2027/28, which gives newcomers some breathing space. Read our Making Tax Digital guide for more.
You can read the full list of measures in HMRC’s Budget 2026 overview of tax legislation and rates, or catch up on what changed last year in our UK Budget 2025 blog.
Key dates and your action checklist
| Date | What changes |
|---|---|
| 30 November 2026 | Founders’ Relief consultation closes |
| 1 January 2027 | 50% first-year allowance starts |
| 1 April 2027 | National Living Wage £13.21; new business rates relief; 12% writing-down allowance (companies) |
| 6 April 2027 | Property income rates 24% / 44% / 49%; BADR limit £500,000; trading allowance £3,000; mileage 35p over 10,000 miles; payrolled benefits in kind; MTD for income over £30,000 |
| April 2028 | MTD for income over £20,000 |
| April 2029 | Pension salary sacrifice NIC cap; Direct Debit for VAT and PAYE |
Before April 2027:
- Plan any big equipment purchases around the 1 January and 1 April 2027 dates
- Landlords: review rental profits and ownership structure
- Thinking of selling? Get advice on BADR before 6 April 2027
- Check your rateable value if you run a shop, café or pub
- Budget for the new minimum wage rates
- Get your payroll ready for payrolling benefits
- Directors: review your salary and dividend mix
- Make sure you’re MTD-ready if your income is over £30,000
We find a quick look at the numbers every few months saves a lot of headaches. Here’s how often you should review your business finances.
Autumn Budget 2026 FAQs
No. The main rate stays at 25% and the small profits rate at 19%. The Government has said it will keep the 25% cap for the rest of this Parliament.
No. The Government confirmed it won’t raise the headline rates of Income Tax, National Insurance or VAT. Your bigger payroll cost from April 2027 is the National Living Wage rise to £13.21 an hour.
From 6 April 2027 your rental profits are taxed at 24%, 44% or 49% depending on your tax band. For example, a higher-rate landlord with no mortgage and £10,000 of rental profit would pay about £400 more a year than at today’s 40%.
Most start in April 2027, with the 50% first-year allowance from 1 January 2027. That gives you time to plan, but the best time to start is now.
Let’s make the Budget work for you
Every business is different, and the Autumn Budget 2026 will hit a landlord in Lichfield very differently from a café owner in Tamworth or a director selling up in Sutton Coldfield. The good news is most changes don’t kick in until April 2027, so there’s time to plan.
Whether it’s tax planning, getting your payroll ready, or a full review through our All Inclusive Accountancy service, we’re here to help.
Get in touch with CF Accountancy Services:
- Call 01827 909 169
- Email hello@cfaccountancy.co.uk
- Pop in to 8 Bridge Street, Tamworth, B78 1DT
- Or book a chat through our contact page
This blog is a summary of the Budget announcements of 28 October 2026 and is not personal advice. Some measures may change as they pass through Parliament.
