Autumn Budget 2026: what it means for you

Trading allowance triples

The tax-free trading allowance rises from £1,000 to £3,000 from 6 April 2027, and the Self Assessment reporting threshold for trading income rises with it.

• If your gross trading income stays under £3,000, you may not need to register or file
• Above it, you can still deduct your real costs instead, whichever is better
• The property allowance stays at £1,000

Property and savings tax rates rise

Rates on property and savings income go up by a further two points from 6 April 2027, to 24% basic, 44% higher and 49% additional.

• Property income rates apply in England, Wales and Northern Ireland; Scotland sets its own
• Savings rates apply across the UK
• Employment and dividend rates are not affected

The £30,000 threshold is still coming

Not new in this Budget, but it matters most: from 6 April 2027, sole traders and landlords with turnover over £30,000 must use Making Tax Digital. It drops to £20,000 in April 2028.

• Quarterly updates to HMRC from digital records
• Reports say joiners get a soft landing on late-submission penalty points in the first year
• On our plans you move from £15 to £35 a month when it applies to you

55p a mile is now permanent

The approved rate of 55p for the first 10,000 business miles stays. The rate above 10,000 miles rises from 25p to 35p, expected from 6 April 2027.

• Keep a mileage log, it is the first thing HMRC asks for
• We apply the right rate to your claim

Payments on account will change

From April 2029 the government plans smaller, more regular in-year payments instead of the January and July instalments. The detail is still out for consultation, so nothing changes yet.

New pension tax allowance

From 2027/28 to 2029/30, pensioners whose total income is no more than the full new State Pension will not be pulled into tax just because of the State Pension increase and the frozen allowance.

Bigger first-year allowance

For companies, the first-year allowance on main-rate plant and machinery rises from 40% to 50% for qualifying new equipment bought on or after 1 January 2027.

• Full expensing (100%) for qualifying new equipment continues
• The writing-down allowance falls from 14% to 12% from April 2027
• The Annual Investment Allowance is unchanged. Timing a purchase can change your tax bill, so ask us first

Business Asset Disposal Relief halves

The lifetime limit for the 18% rate drops from £1 million to £500,000 for disposals on or after 6 April 2027.

• If you are planning a sale, timing before April 2027 may matter
• A new Founders' Relief (10% on up to £10 million) is aimed at large, fast-growing companies, so it is unlikely to affect most small firms

A duty to correct mistakes

The government plans a general duty to correct known errors in returns, expected from April 2028. Not correcting a known error is likely to be treated as deliberate.

• A good reason to put old problems right early
• We handle voluntary disclosures in confidence

Pensions inside the estate

From April 2027, unused pension funds and some death benefits fall within inheritance tax. Worth a look if you hold a large pension.

Minimum wage rises in April 2027

From 1 April 2027 the National Living Wage (21 and over) rises 3.9% to £13.21 an hour.

• Ages 18 to 20: £11.27
• Ages 16 to 17 and apprentices: £8.31
• We update your payroll for you

Benefits through payroll

Reporting company cars, vans, fuel and medical benefits through payroll becomes mandatory from 6 April 2027. Other benefits follow from April 2028.

Nil returns are back

Not a Budget change, but easy to miss: since 6 April 2026 contractors must file a nil CIS return for any month they pay no subcontractors, unless they tell HMRC in advance.

• We file or notify HMRC for you every month

E-invoicing is coming

Mandatory VAT e-invoicing is planned from 1 April 2029, with detailed rules due by April 2028. No change to the standard VAT rate was announced.