The Autumn Budget 2026 has been announced, and as always, there’s plenty to get your head around!
From changes to tax allowances and business rates to increases in the National Minimum Wage and support for household bills, there are a number of announcements worth being aware of. Some will take effect in the coming months, while others are a little further down the line.
But what do all these changes actually mean for you, your business or your household?
We’ve pulled together the key announcements in one place, breaking down what’s changing, when it comes into effect and what you might need to consider. No unnecessary jargon, just clear, practical information to help you understand what’s ahead.
PERSONAL TAX AND INCOME
1. Income Tax Rates Remain Unchanged
The main rates of Income Tax, National Insurance and VAT remain unchanged.
For the 2027/28 tax year, the main Income Tax rates in England, Wales and Northern Ireland will remain at 20%, 40% and 45%, with the Personal Allowance staying at £12,570.
However, frozen tax thresholds mean that as wages and other income increase, more people could find themselves paying a higher proportion of their earnings in tax.
What does this mean for you? Even without a rise in tax rates, it’s worth reviewing how salary increases, dividends or additional income could affect your overall tax position.
2. Tax on Savings and Property Income Is Increasing
From 6 April 2027, Income Tax rates on taxable savings interest and property income will rise by two percentage points.
| Tax band | Current rate | From April 2027 | |
| Basic rate | 20% | 24% | |
| Higher rate | 40% | 44% | |
| Additional rate | 45% | 49% |
This could mean higher tax bills for landlords receiving rental income and individuals earning taxable interest on their savings.
Existing tax-free allowances may still apply, so the changes won’t necessarily affect everyone with savings or property income.
3. Cash ISA Allowance Stays at £20,000
The government has reversed earlier plans to reduce the Cash ISA allowance from £20,000 to £12,000 for under-65s.
The annual ISA allowance will therefore remain at £20,000 for 2027/28, allowing eligible savers to continue earning tax-free interest on qualifying savings.
CHANGES FOR EMPLOYERS AND EMPLOYEES
4. National Minimum Wage Is Increasing
From 1 April 2027, the National Minimum Wage and National Living Wage will increase again.
| Age group | Current hourly rate | From April 2027 | |
| 21 and over | £12.71 | £13.21 | |
| 18–20 | £10.85 | £11.27 | |
| 16–17 | £8.00 | £8.31 | |
| Eligible apprentices | £8.00 | £8.31 |
For employers, these increases will need to be factored into staffing costs and budgets for the next financial year.
It’s also worth reviewing wider pay structures, particularly where other employees earn slightly above the minimum rate.
5. Business Mileage Allowances Are Increasing
From 6 April 2027, the approved mileage rate for qualifying business travel above 10,000 miles will increase from 25p to 35p per mile.
The existing 55p rate for the first 10,000 qualifying business miles, introduced in April 2026, will remain in place.
This could benefit employees and self-employed individuals who regularly use their own vehicles for business journeys, while employers may need to review their mileage reimbursement policies.
6. Changes to Company Car and Van Benefits
From 6 April 2027, taxable benefit values for company vehicles will increase in line with inflation:
- Car fuel benefit: £30,200
- Van benefit: £4,310
- Van fuel benefit: £825
Looking further ahead, from April 2030, company car benefit percentages will increase by a further 1 percentage point, including for electric vehicles. For example, the rate for fully electric company cars will rise from the previously planned 9% to 10%.
The maximum company car benefit percentage will also increase from 39% to 40%.
What does this mean for you? If you provide company vehicles or have a company car yourself, these changes could increase future tax liabilities and employer National Insurance costs. It’s worth factoring them into your vehicle and business planning.
CHANGES FOR SMALL BUSINESSES AND THE SELF-EMPLOYED
7. Trading Allowance Increases to £3,000
From 6 April 2027, the Income Tax Trading Allowance will increase from £1,000 to £3,000.
This could benefit people earning income through small businesses, freelance work or side businesses, subject to eligibility requirements.
The trading income reporting threshold for Self Assessment will also increase to £3,000.
However, the allowance isn’t an additional tax-free amount on top of business expenses. Depending on your circumstances, you may need to choose between claiming the allowance or deducting actual expenses.
8. Business Rates Relief Expanded
From 1 April 2027, more retail, hospitality and leisure businesses in England will qualify for Small Business Rate Relief.
The rateable value threshold for 100% relief will increase from £12,000 to £18,000, with tapered relief available for qualifying properties up to £21,000.
Qualifying businesses will also benefit from additional protection against above-inflation business rates increases over the following two years.
What does this mean for your business? If you operate from commercial premises, particularly in retail, hospitality or leisure, it’s worth checking whether your property could qualify for additional relief.
9. Changes to Capital Allowances
From 1 January 2027, the main-rate first-year capital allowance will increase from 40% to 50%, providing additional tax relief on certain qualifying business investments.
However, the main-rate writing-down allowance will reduce from 14% to 12% from April 2027.
If you’re planning to invest in machinery, equipment or other business assets, the timing of purchases and the type of expenditure could affect the tax relief available.
10. Business Asset Disposal Relief Is Being Reduced
From 6 April 2027, the lifetime limit for qualifying gains under Business Asset Disposal Relief will reduce from £1 million to £500,000.
This relief can reduce the Capital Gains Tax payable when eligible business owners sell or dispose of their business.
If you’re considering selling your business, retiring or transferring ownership, it’s worth discussing your plans with an accountant before making any decisions.
VAT AND DIGITAL TAX CHANGES
11. Online Marketplaces Will Take Greater Responsibility for VAT
From October 2027, online marketplaces will become responsible for collecting VAT on certain sales made through their platforms.
This could affect businesses selling products through online marketplaces, although the rules won’t apply to every transaction.
Businesses will still need to maintain accurate records and meet their other VAT obligations.
12. Making Tax Digital: Further Updates
The government has announced additional measures to support the rollout of Making Tax Digital for Income Tax.
Individuals joining MTD from 6 April 2027 will not receive penalty points for late submission of their first four quarterly updates during the 2027/28 tax year.
The rollout has also been deferred for certain groups of taxpayers.
While this provides some breathing space, it doesn’t remove the requirement for affected individuals to keep digital records and submit quarterly updates.
If you’re self-employed or receive property income, it’s important to understand when MTD applies to you and what you’ll need to have in place.
HOUSEHOLD FINANCES AND COST OF LIVING
13. Further Support for Household Energy Bills
The government has announced several measures intended to help households manage energy costs, including:
- From January 2027: A £100 Household Energy Payment for eligible households in council tax bands A–D in England.
- Until 1 July 2027: An extension of the temporary 0% VAT rate on domestic electricity.
- By the end of 2027, or as soon as possible afterwards: Plans to remove domestic gas standing charges.
The impact on individual households will depend on eligibility, energy usage and how the measures are implemented.
14. Fuel Duty Freeze Extended
The temporary 5p-per-litre reduction in fuel duty has been extended until 1 July 2027, with the planned inflation-linked increase also deferred until that date.
This provides continued support for motorists and businesses that rely on road transport.
15. Additional Support for Pensioners and Parents
From 6 April 2027, a new Pension Tax Allowance will be introduced to help prevent people whose total income is no more than the full new State Pension from having to pay small amounts of Income Tax.
Looking further ahead, the government also plans to extend parental pay to eligible self-employed fathers, partners and adopters from April 2029.
What Does the Autumn Budget Mean for You?
There’s a lot to take in from this year’s Budget, but not every announcement will affect everyone in the same way.
Whether you’re running a business, self-employed or simply looking at how the changes could affect your household finances, the important thing is knowing which announcements are relevant to you and whether there’s anything you need to prepare for.
Some changes are coming into effect relatively soon, while others are still a little way off. We’ll continue to keep you updated as further details and guidance become available.
If you’re unsure how any of the announcements might affect you or your business, we’re here to help. Our team can talk you through the changes, answer your questions and help you plan ahead with confidence.
Get in touch with the Venton team if you’d like to have a chat.