Industry News - 30th October 2026
Following Chancellor John Healey’s delivery of the Autumn Budget on 28th October 2026, here is our review of the key announcements and what they could mean for you, your business and the wider economy.
💰Personal Tax and Savings
Income Tax rates and allowances for 2027–28
The Budget makes no general change to the main Income Tax rates, thresholds or Personal Allowance for 2027–28. The standard Personal Allowance remains £12,570, and the higher-rate threshold remains £50,270.
The main rates on employment, pension, and trading income remain 20%, 40%, and 45% in England, Wales, and Northern Ireland. Different rates and bands apply to Scottish taxpayers.
However, separate changes to savings and property income taxation mean some people will face higher bills.
Savings interest will be taxed at higher rates
From 6th April 2027, the rates applying to taxable savings income across the UK will be 24%, 44% and 49%. These rates add two percentage points to the previously announced 22%, 42% and 47% rates.
Landlords will pay more tax on rental profits
From 6th April 2027, the rates applying to taxable property income will rise to 24%, 44% and 49% in England, Wales and Northern Ireland. This follows the 22%, 42% and 47% rates announced in the previous Budget, with a further two percentage points added in Budget 2026.
Trading allowance increases to £3,000
From 6th April 2027, the trading allowance will increase from £1,000 to £3,000, and the Self-Assessment trading income reporting threshold will also rise. This may simplify matters for people with modest trading or miscellaneous income.
Help for pensioners with modest incomes
A Pension Tax Allowance, previously announced in Budget 2025, will operate for three tax years from April 2027. It is designed to prevent certain pensioners whose total income does not exceed the full new State Pension from having to pay small Income Tax bills through Simple Assessment. The relief is gradually withdrawn as income increases.
A new ISA for first-time buyers
From April 2029, a new First Time Buyer ISA is due to replace the Lifetime ISA for new savers. It will allow contributions of up to £4,000 a year and provide a 25% government bonus calculated on the final account balance, capped at £20,000. The bonus will be paid when funds are withdrawn towards a qualifying first home costing no more than £450,000.
Higher National Living Wage
From 1st April 2027, the National Living Wage for workers aged twenty-one and over will rise by 3.9% to £13.21 an hour. This will increase gross pay for eligible employees, while employers will need to budget for the additional payroll costs.
💰Business Owners & Company Directors
Business rates relief for high-street firms
From April 2027, qualifying retail, hospitality and leisure properties in England will benefit from revised business rates support. The thresholds for 100% Small Business Rate Relief in these sectors rise from a rateable value of £12,000 to £18,000, with tapered relief up to £21,000 increased from £15,000. Additional relief is planned for pubs, social clubs and live music venues.
Selling a business: review the tax position
From 6th April 2027, the lifetime limit for Business Asset Disposal Relief will fall from £1 million to £500,000. This may increase Capital Gains Tax for qualifying owners selling a business or shares. Anyone considering a disposal should take advice well before agreeing terms, particularly where contracts or reorganisations are involved.
New 10% relief for qualifying business founders
The Government has proposed Founders’ Relief for qualifying share disposals from 6th April 2027. Eligible founders and significant early investors in high-growth, innovative UK companies could pay 10% Capital Gains Tax on qualifying lifetime gains of up to £10 million.
The relief will have specific eligibility conditions and will not replace Business Asset Disposal Relief (BADR) for business owners generally. Claims under BADR or Investors’ Relief from 6 April 2027 will count towards the £10 million lifetime limit, reducing the amount available under Founders’ Relief.
The proposals remain subject to a technical consultation, which closes on 30th November 2026, so the final conditions may change.
Changes to tax relief on equipment
The existing 40% main-rate first-year allowance is to increase to 50% for qualifying expenditure from 1st January 2027. The main-rate writing-down allowance will reduce to 12% from 1st April 2027 for Corporation Tax and 6th April 2027 for Income Tax. These changes affect the timing of relief, but the Annual Investment Allowance and full expensing may still be available in appropriate cases. Businesses considering substantial equipment purchases should review which relief applies.
Corporation Tax rates remain unchanged
The Government has confirmed a 25% main Corporation Tax rate and 19% small profits rate for the fiscal year beginning April 2028. The amount a company actually pays can depend on its profits and associated company rules.
Corporation Tax rates remain unchanged
The Corporation Tax surcharge on banking companies is increasing from 3% to 6%. The change will apply from 1st January 2027 to 31st March 2028.
🏦Employers and Payroll
More company benefits will be taxed through payroll
From 6th April 2027, employers must report and tax company cars, vans, fuel and medical benefits through payroll. Most other taxable benefits follow from April 2028, except employment-related loans and living accommodation.
Company car costs continue to change
Company car benefit percentages are set to increase further for 2030–31, including a one percentage point increase for zero-emission vehicles. Employers planning fleet changes should consider total running and tax costs, not just purchase price.
💸Pensions
Unused pension funds and Inheritance Tax
Most unused pension funds and pension death benefits will be included in Inheritance Tax calculations for deaths on or after 6th April 2027. The Finance Act 2026 legislated the main change, following an earlier announcement.
↩️VAT, tax returns and business administration
Electronic VAT invoicing is on the horizon
The Government intends to introduce mandatory electronic VAT invoicing from April 2029. Regulations will prescribe the electronic format. This goes further than sending a PDF invoice by email, and businesses should watch for software guidance and detailed implementation rules.
Making Tax Digital: an important concession
The next group of sole traders and landlords will be required to join Making Tax Digital for Income Tax from April 2027. The Government says it will not apply late submission penalty points to quarterly updates for the 2027–28 tax year for taxpayers required to join that April. Quarterly updates will still be required before a tax return can be submitted.
Tax payments could become more frequent
From April 2029, the Government plans more regular in-year Income Tax payments for Self-Assessment taxpayers who currently make payments on account. The Government is still developing the detailed arrangements. This is a forward-planning issue, not an immediate change to January 2027 payments.
Direct Debits proposed for VAT and PAYE
From April 2029, the Government plans to require Direct Debit instructions for VAT and PAYE return liabilities, subject to exceptions. Businesses can still pay by another method before a specified cut-off, with Direct Debit used for unpaid balances. Detailed rules will follow.
Tax return errors and HMRC compliance
From 1st April 2028, new rules will require taxpayers to correct certain inaccuracies and will give HMRC powers to issue Customer Correction Notices. Businesses and individuals should maintain reliable records and tell their accountant promptly if they discover an error in information already supplied to HMRC. The detailed legal conditions will determine when the new rules apply.
Online marketplaces and retail systems
From October 2027, online marketplaces will become responsible for VAT on certain sales by UK VAT-registered sellers and by other UK sellers whose annual sales exceed £90,000 on an individual platform. The precise scope of qualifying transactions matters, and the measure does not mean that every casual private sale will attract VAT. Businesses selling through platforms should review how this affects their invoicing and reporting.
🚗Motoring and other business costs
Mileage allowance for business travel
The tax-free and tax-deductible car and van mileage rate for the first 10,000 qualifying business miles increased to 55p from 6 April 2026, following an announcement on 21 May 2026. This increase is now permanent. Separately, the rate for qualifying mileage above 10,000 miles will rise from 25p to 35p from 6 April 2027, announced on 27 October 2026. Employers and self-employed people using simplified mileage calculations should update their records and policies as appropriate.
Electric vehicle mileage charges
From April 2028, a mileage-based charge is planned for electric and plug-in hybrid cars: 3p per mile for fully electric and hydrogen fuel-cell cars, and 1.5p per mile for plug-in hybrids.
🤔What should you do now?
- If you are considering selling a business, review the timing and potential Capital Gains Tax cost before entering into a binding agreement.
- If you are a landlord or have substantial savings outside ISAs, review your forecast income and tax liabilities for 2027–28.
- If you employ staff, ask your payroll provider about compulsory payrolling of benefits from April 2027.
- If you are a sole trader or landlord approaching Making Tax Digital, check your start date and software arrangements.
- If you plan substantial investment, an electric vehicle purchase, or changes to pension and estate arrangements, seek advice before committing.
- We can help identify which announcements apply to your circumstances and whether you need to act now or later.
At Perrigo, we’ll help you understand what the Budget means for you and your business, review your options and plan ahead.
If you’d like to understand what the Autumn Budget means for you and your business, contact the Perrigo Consultants team on 01299 488860 or book a FREE discovery call below.
