Autumn Budget 2026 – What it Means For You

The Autumn Budget brings changes to employment costs, business rates and the tax paid on savings and rental income. For business owners, the next step is to understand which measures affect your finances and when to prepare for them.

Here, we explain the announcements most relevant to your business, along with practical steps to help you update your budgets and prepare for changes to your tax bills.

Prepare for higher wage costs from April 2027

The legal minimum wage will increase by 3.9% from April 2027. If you employ staff on minimum wage, you will need to account for this in next year’s payroll budget. Importantly, you may also need to review pay for employees earning just above the minimum, particularly where differences in pay reflect additional responsibilities or experience.

When updating your forecast, include any associated increases in employer National Insurance and pension contributions. This will give you a more accurate picture of the cost before you make decisions about recruitment or pricing.

Check whether your premises qualify for business rates relief

From April 2027, the threshold for full Small Business Rate Relief will increase from £12,000 to £18,000 for qualifying retail, hospitality and leisure properties in England. This could reduce costs for eligible independent shops, cafés, restaurants and other businesses operating from smaller premises.

However, a rateable value below £18,000 does not automatically mean a property will qualify. The type of business and the relief conditions also matter.

Check your eligibility before including a saving in your cash flow forecast. For businesses with several premises, it is particularly important to understand how the rules apply to your circumstances so get in touch if you're unsure.

Review VAT arrangements for marketplace sales

From October 2027, online marketplaces will become responsible for collecting VAT on qualifying sales made by UK businesses through their platforms. The rules will cover UK VAT-registered businesses and other UK businesses meeting an annual sales threshold of £90,000 per platform. Exclusions include personal sales, second-hand goods and business-to-business transactions.

For businesses selling through platforms such as Amazon or eBay, this could affect how VAT is collected and how payments from those platforms are recorded.

So, review how your marketplace reports feed into your bookkeeping. If you sell across several platforms or operate both online and from physical premises, we can help you understand how the arrangements will fit together.

Update your mileage policies and transport forecasts

The existing 5p fuel duty cut and freeze will continue until 1 July 2027. This avoids a planned duty increase, although wider changes in fuel prices will still affect what you pay at the pump.

The 55p tax-free mileage rate for the first 10,000 qualifying business miles in a car or van is also being made permanent. From 6 April 2027, the rate above 10,000 miles will increase from 25p to 35p.

If employees use their own vehicles for business journeys, review your reimbursement policy ahead of the change.

Check eligibility for targeted electricity support

The British Industrial Competitiveness Scheme will start in April 2027, providing eligible manufacturers with electricity discounts of around 20–25%, including support for costs incurred in 2026/27. Around 10,000 energy-intensive manufacturing businesses are expected to benefit.

For qualifying firms, this could reduce a substantial overhead. However, the scheme is targeted, so having high electricity bills alone does not establish eligibility.

Check whether your activities fall within the scheme before adjusting your budget. We can help you assess what any confirmed support would mean for your cash flow.

Ask suppliers about import tariff reductions

The government has announced tariff suspensions covering more than 100 food products, alongside cuts affecting kerosene and fertilisers.

These measures may be relevant to hospitality businesses, food retailers and family farms. The saving will depend on the goods you purchase and the tariffs that currently apply.

If you buy through a supplier, any benefit will also depend on whether the reduction is passed on. Ask how affected products will be priced and use confirmed figures when reviewing your margins.

Review personal tax forecasts for savings and rental income

From April 2027, income tax rates on savings and property income will rise by a further two percentage points. This is in addition to the two-percentage-point increase announced in the 2025 Budget.

Business owners with personal savings or rental income should review the effect on their overall tax position. This also matters where you own commercial premises personally and rent them to your company.

Speak to us if you would like a clearer view of how these income sources fit together.

Cash ISA allowance remains at £20,000

The planned reduction in the cash ISA allowance to £12,000 for under-65s has been scrapped. The annual cash ISA limit will remain at £20,000. If you are building personal savings, this preserves an option for receiving savings interest tax-free.

With tax on savings income set to increase, it is worth reviewing how your personal savings are held and whether you are using the allowances available to you.

Parental pay extended to more self-employed parents

The Budget announced that parental pay will be extended to self-employed fathers and partners. For people running their own business, financial support around the arrival of a child could make taking time away from work more manageable.

The final eligibility rules and implementation timetable should be checked before including any payment in your plans. Alongside this, consider how the business would operate during your absence and what income you would need to cover your commitments.

Turn the announcements into a practical plan

The impact of the Budget will depend on your staffing, premises and sources of income. A business benefiting from rates relief may also face higher payroll costs, so it helps to assess the overall effect.

Start by updating your cash flow forecast for April 2027 onwards. Include confirmed cost increases and check your eligibility for support before relying on savings.

For company directors and family business owners, review your personal finances at the same time. This will give you a clearer view of what the business needs to retain and what is available for you and your family.

Talk to us

If you're unsure how this Budget will affect you, we can review the announcements relevant to you and update your forecasts, helping you prepare for costs and tax payments with greater confidence.

Call us on 0113 240 4100 or book a strategy call to discuss what the Autumn Budget means for you.