Autumn Budget 2026: what it means for you and your business
|2 Nov 2026 · @Jen
Chancellor John Healey delivered his first Autumn Budget on Wednesday 28 October 2026, and the good news first: the headline rates of income tax, National Insurance and VAT haven't changed.
But look a little closer and a clear theme emerges. Income you don't earn through work, such as rental profits and savings interest, is being asked to contribute more. Meanwhile there's genuine help for sole traders, side-hustlers and high street businesses.
Here's our round-up of the changes most likely to affect our clients, and what you might want to think about now.
Sole traders and the self-employed
Trading allowance trebled. From 6 April 2027, the trading allowance rises from £1,000 to £3,000. If you have a small side income, such as selling crafts, freelancing in the evenings or occasional consultancy, you can earn more before any of it is taxable.
One word of caution: this isn't an extra £3,000 deduction for every self-employed person. You either claim the allowance or your actual expenses, so it's worth checking which works out better for you.
Higher mileage rates are here to stay. The higher tax-free mileage rate of 55p per mile for cars and vans has been made permanent. If you use your own vehicle for work, every business mile now saves you more tax.
Parental pay for self-employed dads and partners. A new Parental Allowance for eligible self-employed fathers, partners and adopters is planned from April 2029.
Business owners and employers
Business rates relief for the high street. From April 2027, the threshold for 100% Small Business Rates Relief rises from £12,000 to £18,000 for qualifying retail, hospitality and leisure businesses in England. Thousands of local shops, cafés and gyms could pay no business rates at all.
Minimum wage going up. The National Minimum Wage and National Living Wage will rise by 3.9% in April 2027. If you employ staff, now is a good time to factor this into next year's budget.
Capital allowances trimmed. The main writing-down allowance falls to 12%, which slightly slows the tax relief you get on plant and machinery.
Selling or growing a business? The lifetime limit for Business Asset Disposal Relief has been halved, while a new 10% Founders' Relief on capital gains arrives from 6 April 2027. If an exit is on your horizon, the timing and structure of a sale deserve a careful look.
No VAT changes. The VAT registration threshold stays where it is.
Landlords and savers
Higher tax on rental profits and savings interest. Last year's Budget already announced a 2 percentage point rise in income tax on property and savings income from April 2027. This Budget adds a further 2 points, so from 6 April 2027 these rates will be 4 points higher than today at the basic, higher and additional rates.
If you own rental property personally, it may be worth reviewing how it's held and what that means for your tax bill.
Good news for ISAs. The planned cut to the cash ISA allowance has been scrapped, so you can still save up to £20,000 a year tax-free. With tax on savings interest rising, making full use of your ISA allowance matters more than ever.
Landlord registration. A phased £65 registration fee for landlords in England begins on 15 December 2026.
Pensioners and households
A new Pension Tax Allowance. From April 2027, pensioners whose income is at or below the full new State Pension won't be pulled into income tax just because the State Pension has risen above the personal allowance. The full new State Pension rises by 3.9% to £13,036.
Pension tax-free cash unchanged. Most people can still take 25% of their pension tax-free, up to the standard £268,275 limit.
Help with energy bills. The zero rate of VAT on household electricity and the 5p fuel duty cut have both been extended to July 2027. Households in council tax bands A to D in England will also receive a one-off £100 payment.
What should you do next?
Most of these changes don't take effect until April 2027, which gives you time to plan rather than react. Now is a good moment to review how you hold rental property and savings, check whether the new trading allowance beats your actual expenses, and look at the timing of any business sale.
Every situation is different, so if you'd like to talk through what the Budget means for you or your business, get in touch with the Leathley & Co team. We're always happy to help.
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