Autumn Budget 2026: what it means for you and your business

28 October 2026

The Chancellor’s Autumn Budget brings a mixture of targeted support, higher taxes on some income and further changes to how businesses report and pay tax.

For small businesses, the immediate priorities are employment costs, investment plans and cash flow. Business owners considering a sale, and individuals receiving rental or savings income, also have important changes to consider.

Here are the announcements we think matter most to Access Accounts clients.

Higher minimum wages from April 2027

From 1 April 2027, the National Living Wage for workers aged 21 and over will rise to £13.21 an hour. The minimum rate for 18–20-year-olds increases to £11.27, while the rate for 16–17-year-olds and eligible apprentices becomes £8.31.

For someone working 35 paid hours a week, the 50p increase in the main rate adds £910 to annual gross pay. Employers should also allow for National Insurance, pension contributions and the effect on pay differences across their team.

A reduced relief limit when selling your business

The lifetime limit on gains qualifying for Business Asset Disposal Relief will fall from £1 million to £500,000 for qualifying disposals from 6 April 2027.

This could increase the tax cost of selling a business. Anyone considering a sale or succession should review their position before agreeing terms.

A separate Founders’ Relief is proposed for qualifying founders of high-growth, innovative companies. Its detailed conditions remain under consultation.

Changes to tax relief on equipment

The main-rate first-year allowance will increase from 40% to 50% for qualifying expenditure from 1 January 2027. However, the main writing-down allowance will fall from 14% to 12% from April 2027.

The outcome depends on the asset, purchase arrangements and other allowances available. If you are planning a significant investment, check the tax treatment before committing.

The trading allowance will also increase from £1,000 to £3,000 from 6 April 2027, helping some people with small amounts of qualifying trading or miscellaneous income.

Targeted business rates support

Qualifying retail, hospitality and leisure properties in England will benefit from higher Small Business Rates Relief thresholds from 1 April 2027.

The rateable value ceiling for full relief increases to £18,000, with tapered relief extending to £21,000. Relief for qualifying pubs, social clubs and live music venues will also increase.

These changes do not apply to every small business. Eligibility and the actual rates bill will need checking.

Frozen thresholds continue to affect tax bills

Previously announced freezes to key Income Tax and National Insurance thresholds remain in place until April 2031. As earnings and profits increase, more income can become taxable even without an increase in headline rates. Employers should also factor the continuing freeze in their National Insurance threshold into staffing budgets.

The government has reaffirmed its commitment to cap the main Corporation Tax rate at 25% and retain full expensing for qualifying investment.

Higher business mileage rates

The temporary approved rate of 55p per mile for the first 10,000 qualifying business miles in a private car or van has been made permanent. From 6 April 2027, the rate for miles above 10,000 will increase from 25p to 35p. Equivalent simplified mileage rates will apply to the self-employed.

Employers and business owners should review reimbursement policies and mileage records. These rates are separate from company-car fuel reimbursement rules.

Higher tax rates for savings and rental income

From 6 April 2027, savings income tax rates will rise to 24%, 44% and 49%. The same rates will apply to property income in England, Wales and Northern Ireland.

Landlords and savers should review their expected liabilities and tax reserves. The planned reduction in the cash ISA limit has been cancelled, retaining the £20,000 annual cash ISA limit.

Further changes to VAT and tax administration

Online marketplace VAT rules will change from October 2027, affecting how VAT is collected on qualifying sales.

Looking further ahead, VAT e-invoicing and more regular Self Assessment payments are planned from April 2029. Businesses should keep their accounting systems under review as detailed requirements emerge.

Our view: plan around your own circumstances

The Budget’s effect will vary considerably between businesses. Our advice is to review wage budgets, planned investment, future disposals and expected tax payments before making decisions.

If you would like to understand what the announcements mean for you, contact the Access Accounts team on 01636 705990 or email info@accessaccounts.co.uk.

This summary is based on the government’s Budget document published on 28 October 2026. Measures may be subject to legislation, consultation and detailed eligibility conditions. Please seek advice before acting.