The 2026 Autumn Budget has arrived, bringing a number of changes that could affect businesses, employers and individuals over the coming years.
But what do these announcements actually mean for you?
We’ve picked out some of the key changes and broken them down into simple terms, so you can understand what’s changing, when it’s happening and whether there’s anything you need to do.
If you’re thinking about selling your business in the future, there are some important changes to be aware of.
From 6 April 2027, the lifetime limit for Business Asset Disposal Relief (BADR) will reduce from £1 million to £500,000.
In simple terms, BADR allows eligible business owners to pay a lower rate of Capital Gains Tax when selling their business.
The tax rate will remain at 18%, but the amount of profit that qualifies for this reduced rate will be lower.
The Government has also announced a new Founders’ Relief, offering a 10% Capital Gains Tax rate on qualifying gains for eligible founders of certain high-growth businesses. Further details are still being confirmed.
If you’re considering selling your business or planning your retirement, it’s worth reviewing your plans sooner rather than later to understand how these changes could affect your tax bill.
There are also changes to the tax relief businesses can claim when investing in equipment and other qualifying assets.
From January 2027, the main-rate first-year allowance will increase from 40% to 50%, allowing eligible businesses to claim more tax relief upfront.
However, another allowance used to spread tax relief over several years will reduce from April 2027.
If you’re planning to invest in equipment, machinery or business premises, it’s worth speaking to our team about the timing of your purchases and the tax relief available.
If you employ staff, this is an important one to take note of.
From 1 April 2027, the National Living Wage and National Minimum Wage rates will increase.
The new hourly rates will be:
While this is welcome news for employees, businesses will need to consider how the increase could affect their staffing costs.
And it’s not just wages to think about. Higher pay can also mean increased employer National Insurance contributions, pension contributions and holiday pay.
Now is a good time to review your payroll costs and make sure you’ve factored these increases into your budget for the coming year.
From 6 April 2027, the trading allowance will increase from £1,000 to £3,000.
The trading allowance is a tax exemption for certain types of trading income, such as income earned from a small side business.
Increasing the allowance could mean that more people earning smaller amounts from self-employment won’t have to pay tax on that income.
However, whether you need to report your income to HMRC will depend on your individual circumstances.
If you run a small side business or earn additional income alongside your employment, this change could make a difference to your tax position.
There was also some welcome news for businesses in the retail, hospitality and leisure sectors.
From April 2027, eligible businesses in England will benefit from increased Small Business Rate Relief thresholds.
The threshold for full relief will increase from £12,000 to £18,000 of rateable value, meaning more qualifying businesses could avoid paying business rates altogether.
Additional support has also been announced for pubs, social clubs and live music venues.
If you operate from business premises, it’s worth checking whether you could benefit from the changes.
If you receive income from rental properties or savings, there are some important changes coming.
From 6 April 2027, the Income Tax rates applying to property and savings income will increase.
The new rates will be:
For landlords, this could mean paying more tax on rental profits, even if the amount of income you receive stays the same.
If you own rental properties or receive income from savings, it’s worth reviewing your finances and understanding how the changes could affect your future tax bills.
Planning ahead can help avoid unexpected costs.
The Budget also included several announcements aimed at helping households manage rising living costs.
The Government announced plans to extend the temporary 0% VAT rate on domestic electricity until July 2027.
Other measures include a £100 Household Energy Payment for eligible households in England and plans to remove standing charges from household gas bills.
The temporary 5p fuel duty reduction will also remain in place until 1 July 2027.
For businesses that rely on vehicles, whether that’s travelling to clients, making deliveries or operating a fleet, fuel costs remain an important consideration when planning ahead.
There are also changes on the way to how businesses and individuals manage their tax affairs.
From April 2029, the Government plans to introduce more regular Self Assessment payments on account, meaning some taxpayers could need to pay more of their tax throughout the year rather than after the tax year has ended.
Businesses will also be required to use Direct Debit for VAT and PAYE payments.
Another change coming in April 2029 is the introduction of mandatory electronic invoicing for VAT.
This will mean businesses need to issue and receive VAT invoices electronically in line with the new requirements.
Although these changes are still a few years away, they’re another reason why keeping accurate digital records and having the right systems in place is becoming increasingly important.
We’ll continue to keep our clients updated as more details become available.
As with any Budget, not every announcement will affect everyone, and many of the changes won’t come into effect straight away.
Whether you’re running a business, employing staff, managing rental properties or planning for the future, the important thing is understanding which changes apply to you and what you might need to do to prepare.
We know that keeping up with changes to tax rules isn’t always easy, particularly when you’re busy running a business or managing your finances.
The good news is, you don’t have to figure it all out on your own!
If you’re unsure how any of the Budget announcements might affect you, our team is here to help.
Our friendly and helpful approach to accountancy, ensures that you understand and are in tune with your finances. Our committed team will communicate with you every step of the way so that you understand the position of your financial affairs – get in touch today.
