Budget Updates
Concise, founder-friendly briefings on UK Budget and Autumn Statement measures — what has already taken effect, what is coming, and the practical implications for your business. Sourced from GOV.UK and HMRC.
Last reviewed against GOV.UK and HMRC guidance on 7 August 2026.
The increase announced at Autumn Budget 2024 took effect on 6 April 2025 and remains the position for 2026/27: employer Class 1 NIC is charged at 15%, with an annual secondary threshold of £5,000. Payroll cost should be modelled on this basis before any salary review.
GOV.UK — Rates and thresholds for employers 2026 to 2027Eligible employers can claim Employment Allowance of up to £10,500 against their employer Class 1 NIC bill in 2026/27. Eligibility conditions apply — not every employer qualifies, and single-director companies with no other employees are generally excluded. Check the GOV.UK eligibility criteria before claiming.
GOV.UK — Employment Allowance eligibilityThe main CGT rates are 18% on gains falling within any remaining basic-rate band and 24% above it — the rate that applies depends on your other taxable income, so 18% does not apply automatically to every gain. The Annual Exempt Amount for individuals is £3,000. Business Asset Disposal Relief is charged at 18% for qualifying disposals from 6 April 2026.
GOV.UK — Capital Gains Tax ratesLegislated in Finance Act 2026, most unused pension funds and pension death benefits will form part of the deceased's estate for Inheritance Tax from 6 April 2027. Death-in-service benefits paid from registered pension schemes are excluded, and normal exemptions and reliefs still apply — so not every pension death benefit will be taxable. Estate planning involving pensions is worth revisiting well before that date.
GOV.UK — Inheritance Tax on pensions technical noteThe employee Class 1 main rate is 8%, with 2% on earnings above the Upper Earnings Limit. Self-employed Class 4 NIC is charged at 6%, with 2% above the Upper Profits Limit. These rates followed the reductions announced at Spring Budget 2024 and remain useful context when comparing salary and dividend remuneration for directors.
GOV.UK — National Insurance rates and allowancesThe £12,570 personal allowance, £37,700 basic-rate limit and £50,270 higher-rate threshold are maintained through the 2030/31 tax year, until 5 April 2031 — an extension announced at Budget 2025, beyond the earlier April 2028 end date. Where earnings rise while thresholds stay fixed, a greater proportion of income can fall into tax; the effect depends on individual circumstances and is worth modelling into multi-year remuneration plans.
GOV.UK — Maintaining Income Tax thresholds until 5 April 2031Summaries are for general guidance and reflect publicly available information from GOV.UK and HMRC at the time of writing. They are not a substitute for tailored advice — individual circumstances vary, so please speak with us before acting.
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