The Chancellor delivered the Autumn Budget on 28 October 2026, announcing several changes that may affect you. While there were no increases to the main rates of Income Tax, National Insurance or VAT, there are a few changes worth being aware of.
Property and Savings Income
From April 2027, Income Tax rates on property income will increase by a further two percentage points. The new rates will be 24% for basic rate taxpayers, 44% for higher rate taxpayers and 49% for additional rate taxpayers.
Rates on savings income will also rise by two percentage points from April 2027, reaching 24%, 44% and 49% respectively for basic-rate, higher-rate and additional-rate taxpayers across the UK.
Business Rates Measures
A number of changes to business rates will be introduced from April 2027 to support high street businesses. Business rates relief for pubs, social clubs and eligible live music venues will increase from 15% to 35%.
The threshold for 100% Small Business Rates Relief will also increase from £12,000 to £18,000 in rateable value for qualifying retail, hospitality and leisure properties in England. This is expected to bring around 70,000 additional businesses out of business rates altogether.
Mileage Allowance
From 6 April 2027, the approved mileage rate for business travel in personal vehicles will remain at 55p per mile for the first 10,000 business miles. The rate for any additional miles will increase from 25p to 35p per mile.
Trading Allowance
From 6 April 2027, the trading allowance will increase from £1,000 to £3,000. This will benefit individuals earning smaller amounts from side businesses or occasional trading activities. The allowance is used instead of deducting actual expenses.
Minimum Wage and Parental Pay Changes
From 1 April 2027, the National Living Wage for workers aged 21 and over will increase by 3.9%, from £12.71 to £13.21 per hour. The rate for 18–20-year-olds will rise to £11.27, while the rates for 16–17-year-olds and eligible apprentices will increase to £8.31.
From April 2029, eligible self-employed fathers, partners and adopters will be able to access parental pay for the first time.
What Should You Do Now?
Although many of these changes will not take effect immediately, it is worth considering how they could affect your personal finances or business plans.
We will continue to monitor the changes and keep our clients informed. If you have any questions about how the Autumn Budget may affect you, please get in touch with our team.
