What the Autumn Budget 2026 Means for UK Businesses

National Living Wage Rises to £13.21 from April 2027

The National Living Wage will increase to £13.21 per hour from 1 April 2027 for workers aged 21 and over. This represents a 3.9% increase, while the rate for workers aged 18 to 20 will rise to £11.27.

An employee working 40 hours weekly could receive approximately £1,040 more in annual gross pay.

For employers, higher wages also affect National Insurance contributions and workplace pension costs. Businesses should review staffing budgets before the new rates take effect.

Our Payroll Services help employers manage wage changes and maintain HMRC compliance.

According to HM Treasury’s Budget 2026 document, the increase aims to support lower-paid workers.

Property and Savings Income Tax Rates Rise from April 2027

Landlords and savers could face higher tax bills from 6 April 2027.

The Government will introduce separate Income Tax rates for property and savings income. These changes were previously announced and will be included in Finance Bill 2026-27.

The savings rates will apply across the UK. Property income rates will apply in England, Wales and Northern Ireland, subject to devolved arrangements.

For example, consider a landlord earning £10,000 in taxable rental profits. A four-percentage-point increase could add £400 to their annual tax bill.

This simplified calculation assumes the entire £10,000 faces the increase and other circumstances remain unchanged.

Landlords should review rental profitability and mortgage interest relief before April 2027.

Our Landlord Tax Services help property owners understand their liabilities and plan their finances.

Source: HMRC Budget 2026 Overview of Tax Legislation and Rates

Capital Gains Tax Changes Bring Founders’ Relief and Lower BADR Limits

Business owners planning company sales should review two important Capital Gains Tax announcements.

New 10% Founders’ Relief

The Government proposes a new Founders’ Relief for qualifying founders and significant early investors.

The relief would apply a 10% CGT rate to qualifying lifetime gains up to £10 million. It targets founders of innovative, high-growth UK companies.

For example, a qualifying founder making a £2 million gain could face £200,000 in Capital Gains Tax.

This illustration excludes exemptions and losses. Eligibility depends on the final legislation.

The Government intends to introduce the relief from 6 April 2027. However, detailed eligibility conditions remain under consultation until 30 November 2026.

Source: HM Treasury Founders’ Relief Technical Consultation

Business Asset Disposal Relief Limit Falls to £500,000

The Government will reduce the Business Asset Disposal Relief lifetime gains limit from £1 million to £500,000.

This change will apply to qualifying disposals from 6 April 2027, subject to legislation.

Business owners may therefore have fewer gains eligible for BADR when selling qualifying businesses or shares.

Special transitional rules will apply to certain contracts and share reorganisations.

Directors considering a business sale should review their position before making irreversible decisions.

Our Corporation Tax Services support company tax compliance and wider business planning.

Source: HMRC Budget 2026 OOTLAR, Section 1.33

Dividend and Profit Extraction Rules Face Reform

Company directors should monitor upcoming changes to the taxation of company distributions.

The Government plans to modernise the rules governing distributions and repayments of capital from companies.

These reforms aim to address tax advantages arising from certain profit extraction arrangements. They also seek to protect genuine commercial transactions and business succession.

The Government plans to introduce the changes from April 2028, with draft legislation expected in 2027.

For directors, the final rules could affect certain arrangements involving company distributions.

However, businesses should avoid changing their salary and dividend arrangements based solely on proposed reforms.

Our Tax Planning & Advice service helps directors review their tax position.

Artifin will confirm what these changes mean for your salary and dividend arrangements once detailed legislation becomes available.

Source: HMRC Budget 2026 OOTLAR, Section 2.15

Trading Allowance Increases to £3,000

The Government plans to increase the annual trading allowance from £1,000 to £3,000 from 6 April 2027.

The trading income Self Assessment reporting threshold will also increase to £3,000.

This could benefit individuals earning modest amounts through freelance work or side businesses.

For example, someone earning £2,500 from eligible side activities could benefit from the higher allowance.

However, the allowance applies to qualifying gross income, rather than automatically exempting £3,000 of taxable profits.

Other circumstances may also create Self Assessment reporting requirements.

Until legislation changes, the existing £1,000 trading allowance continues to apply.

Our Self Assessment Services help individuals manage tax returns and understand available allowances.

Source: HMRC Budget 2026 OOTLAR, Section 1.5

Self Assessment Payments Set to Change from 2029

The Government plans to introduce smaller, more frequent Self Assessment tax payments from April 2029.

The changes will affect taxpayers who currently make payments on account.

Instead of relying mainly on existing payment deadlines, affected taxpayers would make more regular payments towards their annual liabilities.

The Government also plans automated payments, with eligible taxpayers potentially paying through PAYE.

However, the detailed payment schedule and implementation arrangements remain under development.

Sole traders and landlords should monitor these changes when planning future cash flow.

Source: HMRC Budget 2026 OOTLAR, Section 2.31

Mileage Allowances and Capital Allowances Are Changing

The Budget introduces changes affecting business travel and qualifying capital expenditure.

Mileage Rate Increases to 35p After 10,000 Miles

The approved mileage rate above 10,000 business miles will increase from 25p to 35p per mile.

The change will take effect from 6 April 2027.

For example, someone driving 15,000 qualifying business miles could receive £500 more in approved mileage payments.

This assumes 5,000 miles qualify for the increased rate.

Employers should review mileage reimbursement policies before implementation.

Source: HMRC Budget 2026 OOTLAR, Section 2.7

First-Year Capital Allowance Rises to 50%

The Government plans to increase the main-rate first-year allowance to 50% for qualifying expenditure from 1 January 2027.

However, the main-rate writing-down allowance will reduce to 12% from April 2027.

These changes could affect businesses purchasing qualifying equipment and machinery.

Companies should compare available capital allowances before deciding how to claim relief.

For businesses investing in equipment, our Annual Investment Allowance guide explains the existing rules.

Source: HMRC Budget 2026 OOTLAR, Section 1.42

Benefits in Kind Reporting Changes from April 2027

Employers must prepare for mandatory real-time reporting of certain taxable employee benefits.

From 6 April 2027, employers will report specified benefits through payroll software using Real Time Information.

This will reduce reliance on traditional year-end P11D reporting for affected benefits.

Employment-related loans and employer-provided accommodation remain outside the mandatory second phase pending further decisions.

Employers should review their benefits records and payroll software before the transition.

Source: HMRC Changes to Reporting Benefits in Kind

Will the Autumn Budget Affect Your Business?

Understand how upcoming tax changes could affect your company finances or rental income.

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Other Autumn Budget 2026 Announcements at a Glance

Several additional measures could affect businesses and individual taxpayers.

These measures have different commencement dates and legislative requirements.

The proposed First Time Buyer ISA would offer a maximum £20,000 government bonus on eligible first-home purchases.

The Government proposes a £450,000 property price limit. Existing Lifetime ISA customers would retain access to their accounts under continuing rules.

Source: HM Treasury First Time Buyer ISA Consultation

What This Means for You

Directors and Contractors

Proposed distribution reforms could affect future profit extraction arrangements. Changes to Founders’ Relief and BADR may also influence business sale decisions.

Review existing arrangements before committing to major transactions.

Landlords and Savers

Higher property and savings tax rates could reduce income retained after tax. Review expected liabilities before April 2027.

Sole Traders and Side-Income Earners

The £3,000 trading allowance could simplify tax obligations for eligible individuals. More frequent Self Assessment payments may also affect future cash flow.

Employers

Higher wages and mandatory Benefits in Kind reporting will require advance preparation. Employers should review payroll budgets before April 2027.

Are You Prepared for the Autumn Budget 2026 Changes?

The Autumn Budget 2026 brings important tax changes that could affect your income and business finances.

Understanding the new rules can help you prepare for higher costs and identify available reliefs.

At Artifin Accountants, we help businesses and individuals plan with practical tax advice.

Contact our team to discuss how the Autumn Budget 2026 could affect you.