Autumn Budget 28 October: What Small Firms Should Do Now

The Chancellor will deliver the Autumn Budget in just over two weeks. The Budget will be held on 28 October 2026. It will be the first Budget from Chancellor John Healey, and there is already a lot of speculation about tax rises. For small business owners, sole traders, landlords and company directors, the most useful thing right now is to separate what has already been decided from what is still rumour.

What the government has actually said

So far, the official message has focused on tone rather than detail. Writing to the Treasury Committee, the Chancellor said "we will abide by the fiscal rules, ensuring we retain a buffer to protect us against uncertainty". In his video announcement he also said the Budget would give businesses and families "some of the stability they need to plan for the future".

No tax rate or allowance changes have been announced yet. Treat any newspaper story about a specific measure as speculation until the Budget documents are published on GOV.UK on the day.

What is already confirmed for 2026/27 and beyond

Several changes from the November 2025 Budget are already law or firmly scheduled, whatever happens on 28 October.

Dividend tax (in force now)

For the current 2026/27 tax year, the ordinary rate rose from 8.75% to 10.75%, and the upper rate from 33.75% to 35.75% from April 2026. The additional rate stayed at 39.35%. The dividend allowance stays at £500 for 2026/27. If you're a company director taking a mix of salary and dividends, your 2026/27 extraction plan should already reflect these higher rates.

Frozen thresholds

The basic rate band will stay at £37,700 until 5 April 2031. As profits and pay rise, more of your income is likely to fall into the higher-rate band, even though the rates themselves haven't changed.

Landlords: new property income rates from April 2027

From April 2027, the property basic rate will be 22%, the property higher rate 42% and the property additional rate 47%. Finance cost relief will be given at the separate property basic rate (22%). These property income rates will apply to taxpayers in England and Northern Ireland. Savings income rates are going up by the same two percentage points from the same date.

Making Tax Digital: the next wave

If you're a sole trader or landlord, from 6 April 2027 Making Tax Digital applies if your gross income from self-employment and/or property letting is more than £30,000 a year, based on your 2025/26 tax return. The test uses turnover, not profit. If you're already in MTD, your second quarterly update is due by 7 November.

Employers: payrolling benefits in kind

HMRC is moving taxable benefits away from P11D forms and into payroll. From 6 April 2027 (phase 1), company cars, car fuel, vans, van fuel and medical benefits must be reported through payroll. Most other benefits follow from 6 April 2028 (phase 2), while loans and accommodation stay voluntary for now. HMRC has also confirmed that employers will be able to voluntarily exclude 'globally mobile employees' through a new service that will be available from November 2026.

Why timing matters on Budget day

Most income tax and National Insurance changes start at the beginning of a tax year. Measures affecting income tax, National Insurance and dividends would normally start on 6 April 2027. But some changes can take effect straight away. Duties, SDLT and some anti-forestalling measures can take effect from Budget day or the next day. If you're in the middle of buying a property, selling a business asset or planning a large payment out of your company, talk to your adviser before 28 October rather than after.

A practical pre-Budget checklist

• Company directors: look at how much salary and dividends you've taken so far in 2026/27. Check your director's loan account balance and think about whether to take any dividends before the year end.
• Landlords: model your rental profits at the April 2027 rates. If you're thinking about incorporating or restructuring, get advice first rather than reacting to headlines.
• Sole traders and landlords near £30,000: check your 2025/26 gross income now so you know whether MTD applies to you from April 2027.
• Employers: list the cars, vans, fuel and medical cover you provide, and ask your payroll software provider when its payrolling update will be ready.
• Everyone: update your cash-flow forecast and leave some room for changes. Keep an eye on the 31 January 2027 Self Assessment deadline for 2025/26.

If you'd like help with any of these, our accounting and tax services cover directors, landlords and sole traders.

We'll publish a plain-English summary of the measures that matter to small businesses as soon as the Budget documents are released.

How MyTaxLead can help

Our London team can review your position before 28 October and update your plans as soon as the Chancellor sits down. Whether you need to adjust a dividend plan, prepare your property portfolio or get ready for MTD or payrolled benefits, request a free quote and we'll take it from there.