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The Autumn Budget 2026 has now been announced, introducing a range of tax changes and financial measures that will affect UK businesses, company directors, investors and individuals over the coming years.
While some headline tax rates remain unchanged, other announcements could influence how businesses manage their finances, plan investments, pay employees and prepare for future tax liabilities.
With several important changes taking effect from April 2027, understanding what the budget means for your circumstances is essential.
At Pristine Accounts, we help businesses and individuals across the UK stay informed, organised and prepared through professional bookkeeping, tax and accountancy support.
We've broken down the key Autumn Budget announcements into three areas to help you understand what's changing and what you may need to consider.
For UK businesses, the Autumn Budget introduces changes to capital allowances, business rates, payroll reporting and digital tax requirements, while keeping several important tax rates unchanged.
The main Corporation Tax rate remains at 25%, while the small profits rate stays at 19% for companies with profits of £50,000 or less.
Companies with profits between £50,000 and £250,000 may qualify for marginal relief, with thresholds adjusted in certain circumstances.
Although the rates haven't changed, maintaining accurate financial records remains essential for monitoring profitability and preparing for future tax liabilities.
Regular Monthly Management Accounts can help business owners understand their financial position throughout the year, while professional Corporation Tax and Statutory Accounts Preparation services can support accurate reporting and compliance.
The Budget introduces changes to the tax relief available when businesses invest in qualifying plants and machinery.
From 1 January 2027, the first year allowance for qualifying main-rate assets increases from 40% to 50%. However, the main-rate writing down allowance will reduce from 14% to 12% from April 2027.
Importantly, full expensing and the £1 million annual investment allowance remain available, subject to eligibility.
What does this mean for businesses?
If you're planning to invest in machinery, equipment or other qualifying assets, the timing of your expenditure could affect the tax relief available. Working with a professional accountant before making significant purchases can help you understand your options and plan investments more effectively.
The government has announced an increase to the small business rate relief threshold, with an estimated 70,000 additional retail, hospitality and leisure businesses expected to pay no business rates.
For eligible smaller businesses operating from commercial premises, this could help reduce overheads and improve cash flow. Business owners should review their eligibility and consider how any savings could support future investment or day-to-day operating costs.
The employer National Insurance rate remains at 15%, while the secondary threshold stays at £5,000 per year. Although these figures are unchanged, National Insurance remains a significant employment cost for many businesses.
Accurate budgeting and professional payroll services can help employers understand their staffing costs and maintain compliance with their reporting obligations.
From April 2027, certain benefits in kind will need to be reported directly through payroll software.
These include:
Most other employee benefits are expected to follow from April 2028.
Businesses should review their existing payroll processes and ensure their software and reporting procedures are ready for the changes.
From April 2027, the Company Share Option Plan limit will increase to £120,000.
The reporting process for Enterprise Management Incentive (EMI) grants will also change, with notifications moving to the annual return rather than being submitted separately.
These changes could be relevant to growing businesses using employee share schemes to attract and retain staff.
The VAT registration threshold remains at £90,000 of taxable turnover. Businesses approaching this threshold should continue to monitor their turnover regularly, remembering that it is assessed over a rolling 12-month period.
Looking further ahead, VAT invoices will need to be issued in a prescribed electronic format from April 2029, under the announced requirements. This reinforces the importance of maintaining accurate digital accounting records.
As a Xero Silver Partner, Pristine Accounts can help businesses use cloud accounting software alongside professional Bookkeeping Services, VAT Returns and Making Tax Digital support.
For company directors, shareholders, entrepreneurs and investors, several budget announcements could affect personal tax liabilities, business disposals and longer-term financial planning.
The Autumn Budget 2026 confirmed that dividend tax rates will remain unchanged for the 2027/28 tax year.
The Dividend Allowance also remains at £500, with the following rates applying to dividend income above the allowance:
Although no further increases were announced, dividend taxation remains an important consideration for limited company directors who take income through a combination of salary and dividends.
Working with a trusted accountant can help business owners review how they draw income from their company, understand their personal tax liabilities and plan their finances efficiently.
The Business Asset Disposal Relief rate remains at 18%, but the lifetime limit will reduce from £1 million to £500,000 from 6 April 2027. This could be particularly significant for business owners considering selling their company or disposing of qualifying business assets.
If you're planning a business sale or restructuring, it's important to understand how the changes could affect your capital gains tax liability. Seeking professional tax advice before making major decisions can help you assess the implications.
The government has launched a consultation on a proposed founders’ relief aimed at supporting founders and early investors in high-growth UK companies.
The proposal includes:
As this is currently a proposal rather than a confirmed operational relief, businesses should monitor further announcements before making decisions based on its availability.
From April 2027, Income Tax rates on property and savings income will increase to:
These changes could affect landlords receiving rental income and individuals with taxable savings interest, depending on their circumstances and applicable UK tax rules. For landlords, maintaining accurate records of rental income and allowable expenses will become increasingly important.
Professional Self Assessment Services and ongoing bookkeeping support can help ensure income and expenses are recorded correctly and tax obligations are managed throughout the year.
From April 2029, only the first £2,000 of employee pension contributions made through salary sacrifice each year will benefit from the National Insurance exemption. Contributions above this amount will be subject to the relevant National Insurance treatment.
This could affect employers offering salary sacrifice arrangements and employees using them to make pension contributions. Reviewing pension arrangements and payroll processes ahead of the changes may help businesses and individuals prepare.
Alongside the changes affecting businesses and investors, the Autumn Budget includes several measures that could influence personal finances, savings and tax responsibilities.
The Personal Allowance and Income Tax thresholds will remain frozen until April 2031.
Although the headline tax rates may remain unchanged, frozen thresholds can result in more individuals paying higher amounts of tax as their earnings increase. This is particularly relevant for those receiving pay rises or earning additional income through self-employment or other sources.
From April 2027, the trading allowance will increase from £1,000 to £3,000. This could benefit individuals earning smaller amounts of qualifying trading income, such as those with side businesses or occasional self-employment income.
However, the allowance has specific eligibility rules and shouldn't be confused with the separate thresholds used for Making Tax Digital. If you're unsure whether you need to register for Self Assessment or declare additional income, a professional accountant can help you understand your responsibilities.
The annual ISA allowance remains at £20,000. The previously proposed reduction to the cash ISA limit will not go ahead. This means individuals can continue to use the existing annual ISA allowance when planning their savings and investments, subject to the relevant account rules.
From April 2027, unused pension funds and certain death benefits will be brought within the scope of Inheritance Tax. This could have implications for individuals planning how their pension savings will be passed on to beneficiaries. Those potentially affected may wish to review their estate-planning arrangements and seek specialist advice.
Although not every announcement will affect everyone, the budget provides a useful opportunity to review your financial position and prepare for upcoming changes.
For business owners in particular, it’s worth considering:
The key is to plan ahead rather than waiting until new rules take effect.
At Pristine Accounts, we understand that changes to tax legislation can create uncertainty for business owners and individuals alike.
Our team provides professional bookkeeping and accountancy services to clients across the UK, helping them stay organised, compliant and financially informed.
Our services include:
We focus on providing proactive support throughout the year, helping clients understand their financial position, prepare for upcoming deadlines and make informed decisions.
Whether you’re managing a growing business, reviewing your personal tax position or preparing for future changes, our team can provide support tailored to your needs.
Key announcements include changes to capital allowances, expanded business rates relief, new payroll reporting requirements and future electronic VAT invoicing obligations. Corporation Tax and employer National Insurance rates remain unchanged.
No. The main Corporation Tax rate remains at 25%, while the small profits rate stays at 19%, subject to the applicable thresholds and rules.
Yes. From April 2027, the announced dividend tax rates above the £500 allowance will be 10.75%, 35.75% and 39.35%, depending on the relevant tax band.
No. The VAT registration threshold remains at £90,000 of taxable turnover.
A professional accountant can help you understand how the announcements affect your circumstances, review your tax position, maintain accurate financial records and plan for future financial responsibilities.
The Autumn Budget 2026 introduces a range of measures that could affect businesses, company directors, investors and individuals over the coming years.
While some changes won't take effect immediately, understanding what's ahead can help you make informed financial decisions and avoid unnecessary surprises.
At Pristine Accounts, we provide professional bookkeeping, tax and accountancy services to help clients across the UK stay ahead of changing requirements.
Contact Pristine Accounts today to discuss how the Autumn Budget 2026 could affect your business or personal finances and how our team can help you prepare.