Tax & Budget · 5 min read
Autumn Budget 2026: What It Means for Your Business
By Ali Tekagac, Managing Director, Singletree Accountants Ltd ·
Autumn Budget 2026, announced on 28 October, gives business owners several new inputs for next year’s plans. The useful response is not to change today’s payroll or rush a transaction: separate current rules from future measures, identify which apply to you, and translate them into a cash-flow forecast. This briefing focuses on payroll, individual trading income, business disposals, savings, property income and England’s business rates.
Primary source: HM Treasury — Budget 2026
| Measure | Effective date | Planning impact |
|---|---|---|
| NLW, age 21+ | 1 April 2027 | £12.71 → £13.21 per hour |
| Individual trading allowance | 6 April 2027 | £1,000 → £3,000, if eligible |
| BADR lifetime qualifying gains | 6 April 2027 | £1m → £500,000; rate remains 18% |
| Savings / property income | 6 April 2027 | Planned 24% / 44% / 49%; geography matters |
| England RHL business rates | 1 April 2027 | Eligible relief; real-terms freeze to 31 March 2029 |
Payroll: budget for April, not an immediate rate change
The National Living Wage for workers aged 21 and over remains £12.71 an hour until the change on 1 April 2027, when it rises to £13.21. The forthcoming rates are £11.27 for ages 18–20 and £8.31 for under-18s and qualifying apprentices. The apprentice rate applies to those under 19, or aged 19 and over in their first apprenticeship year; otherwise the age-related rate applies.
Rebuild your payroll forecast using contracted hours, overtime, age changes and apprenticeship progression. Include employer NIC and pension costs, and consider whether pay differentials need review. Current 2026/27 employer NIC remains 15% above the £5,000 annual secondary threshold; Employment Allowance is up to £10,500 for eligible employers. Do not assume eligibility or that the wage increase is the whole employment-cost increase.
GOV.UK — April 2027 minimum-wage announcement
GOV.UK — current 2026/27 employer rates
Trading allowance: an individual relief, not company funding
The announced trading allowance increase from £1,000 to £3,000 takes effect from 6 April 2027, subject to legislation. It covers eligible individual trading and miscellaneous income, not a universal limited-company allowance. Using the allowance is an alternative to deducting actual expenses, not an extra deduction on top. The related trading-income Self Assessment reporting threshold is also due to rise to £3,000.
Keep income and expense records even where activity is small. Compare the allowance with actual allowable costs, check exclusions and other reporting obligations, and distinguish your personal activity from income belonging to a company. A reporting threshold is not permission to ignore records or every other tax obligation.
GOV.UK — increasing the trading allowance
Business disposals: review qualifying gains and timing
For qualifying disposals from 6 April 2027, the announced Business Asset Disposal Relief lifetime limit falls from £1 million to £500,000. This is a limit on eligible gains, not sale proceeds and not a tax-free allowance. The BADR rate remains 18%, the rate applying to qualifying disposals from 6 April 2026. Not every business, shareholding or disposal qualifies.
If a sale or restructuring is being considered, review eligibility, previous relief claims, expected gains and the relevant disposal date with advisers. Model the net cash available after tax, professional costs and deferred consideration. Commercial and legal requirements still matter; a headline tax change alone is not a reason to accelerate a transaction.
GOV.UK — Budget tax legislation overview, BADR lifetime limit
Savings and property: separate income streams and jurisdictions
A further two percentage points relative to the previously announced 2027 rates would take savings income rates to 24%, 44% and 49% from 6 April 2027, compared with current 20%, 40% and 45%. The same property income rates are proposed for England, Wales and Northern Ireland. Savings rates apply across the UK; Scottish property taxation and devolved powers require separate consideration, including Wales’s ability to set property rates. These are not salary or dividend rates.
For property businesses and portfolio owners, update personal tax reserves separately from company forecasts. Stress-test rent collection, void periods, repairs and project costs before deciding what cash can be withdrawn. Check the taxpayer’s jurisdiction and ownership structure rather than applying one headline rate to every property.
GOV.UK — savings and property proposals
England business rates: eligibility before assumptions
From 1 April 2027, qualifying retail, hospitality and leisure properties in England are due to receive full Small Business Rates Relief up to £18,000 rateable value, tapering to zero at £21,000. A two-year real-terms bill freeze runs to 31 March 2029 for eligible properties: bills are capped by CPI inflation, not universally frozen in cash terms. Conditions and exceptions include improvements and losses of other reliefs.
Check your rateable value, property use and relief eligibility against the official package. Forecast the actual expected bill, including inflation and relevant exceptions, rather than removing business rates from your budget. This England package should not be assumed to apply in Scotland, Wales or Northern Ireland.
GOV.UK — England business-rates package
Turn announcements into a practical planning review
Prepare a current-rules baseline and an April 2027 scenario, assign responsibility for payroll and tax checks, and agree when to revisit assumptions as legislation develops. For a business-specific review, contact Singletree or book a meeting.