Tax Updates
Concise summaries of the UK tax position that matters for owner-managed businesses — VAT, payroll, corporation tax, dividends, R&D, Making Tax Digital and more. Sourced from GOV.UK and HMRC.
Autumn Budget announcements checked against the linked primary sources on 28 October 2026. Retained guidance below keeps its earlier review scope; not every topic has been re-reviewed.
Announced 28 October 2026 · forthcoming changes
Plan for April 2027 without replacing today's rules. Future tax measures are subject to legislation; eligibility, devolved decisions and implementation conditions matter.
Autumn Budget 2026: What It Means for Your BusinessForthcoming · April 2027
For workers aged 21 and over, £12.71 remains the current hourly rate until the April 2027 increase to £13.21. Forecast hours, employer NIC and pension costs; do not apply the future rate as today's minimum.
GOV.UK — primary sourceForthcoming · April 2027
Announced for 6 April 2027, subject to legislation: the £1,000 allowance rises to £3,000 for eligible individual trading and miscellaneous income. It is not a universal limited-company allowance and cannot be used in addition to actual expense deductions. The related trading-income reporting threshold also rises to £3,000.
GOV.UK — primary sourceForthcoming · April 2027
For qualifying disposals from 6 April 2027, the announced lifetime limit falls from £1m to £500,000, subject to legislation. This limits eligible gains, not sale proceeds, and is not a tax-free allowance. The qualifying BADR rate remains 18%; eligibility and previous claims matter.
GOV.UK — primary sourceForthcoming · April 2027
From 6 April 2027, the UK-wide savings rates are planned to rise a further two percentage points relative to the previously announced 2027 rates, to 24%, 44% and 49%, compared with current 20%, 40% and 45%. Subject to legislation; these are not salary or dividend rates.
GOV.UK — primary sourceForthcoming · April 2027
Proposed from 6 April 2027 for England, Wales and Northern Ireland: a further two percentage points relative to the previously announced 2027 rates, to 24%, 44% and 49%, compared with current 20%, 40% and 45% in those jurisdictions. Subject to legislation. Scottish property taxation and devolved powers, including Wales's ability to set property rates, require separate consideration.
GOV.UK — primary sourceOriginal review: 7 August 2026. Employer NIC, dividend rates and minimum-wage rates rechecked on 28 October 2026; other retained topics retain their original review date.
The VAT registration threshold is £90,000 and the deregistration threshold is £88,000. The standard rate of VAT remains 20%. A useful checkpoint for businesses trading near the threshold on a rolling 12-month basis.
GOV.UK — VAT thresholdsFor 2026/27, employer Class 1 NIC is charged at 15% on earnings above an annual secondary threshold of £5,000. Eligible employers can claim Employment Allowance of up to £10,500 against that bill — eligibility conditions apply and not every employer qualifies. Modelling employer cost is essential before pay reviews.
GOV.UK — Rates and thresholds for employers 2026 to 2027The small profits rate of 19% applies to profits of £50,000 or less, and the main rate of 25% to profits above £250,000, with Marginal Relief potentially available between the two limits. These limits are reduced for short accounting periods and where there are associated companies — worth reviewing for group structures.
GOV.UK — Corporation Tax ratesThe tax-free Dividend Allowance is £500. For 2026/27 the dividend rates are 10.75% (ordinary/basic), 35.75% (upper/higher) and 39.35% (additional). Combined with the frozen personal allowance, this affects the optimal salary and dividend mix for many directors.
GOV.UK — Tax on dividendsThe Annual Exempt Amount for individuals is £3,000. Main CGT rates are 18% on gains within any remaining basic-rate band and 24% above it, so the rate depends on your other taxable income. Business Asset Disposal Relief is charged at 18% for qualifying disposals from 6 April 2026. Plan disposals — and the use of spouse allowances — accordingly.
GOV.UK — Capital Gains Tax ratesThe first mandatory phase started on 6 April 2026 for qualifying sole traders and landlords whose combined qualifying gross income from self-employment and property exceeded £50,000 in 2024/25. The threshold is over £30,000 for starting from 6 April 2027 and over £20,000 from 6 April 2028. Exemptions can apply — check HMRC's eligibility guidance for your position.
GOV.UK — When to use Making Tax Digital for Income TaxFor accounting periods beginning on or after 1 April 2024, the SME and RDEC schemes were replaced by the merged R&D Expenditure Credit scheme, alongside Enhanced R&D Intensive Support (ERIS) for eligible loss-making R&D-intensive SMEs. Qualifying conditions are detailed and not every SME will be eligible — claim mechanics and rates changed materially.
GOV.UK — Merged scheme and Enhanced R&D Intensive SupportFrom 1 April 2026 the National Living Wage (21 and over) is £12.71 per hour; the 18–20 rate is £10.85; the under-18 rate is £8.00; and the apprentice rate is £8.00. The apprentice rate applies to apprentices under 19, or aged 19 and over in the first year of their apprenticeship — otherwise the rate for their age applies. A meaningful cost input for hospitality, retail and care employers.
GOV.UK — National Minimum Wage ratesSummaries reflect publicly available information from GOV.UK and HMRC at the time of writing and are for general guidance only. Tax rules change frequently and individual circumstances vary — please speak with us for tailored advice before acting on any of the above.
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