Autumn Budget 2026: What’s in it for Businesses?
28th October 2026
The recent Budget was accompanied by a number of consultations and policy papers that give a strong indication of the Government’s long-term intentions for business taxation. Whilst there were relatively few immediate changes to Corporation Tax, the overarching theme is clear: encouraging investment, supporting innovation, simplifying the tax system and promoting the growth of ambitious UK businesses.
Simplification and Investment
A new consultation, Corporate Tax Simplification for Business Investment, seeks views on areas of the Corporation Tax system that create complexity, uncertainty and administrative burdens. The Government’s intention is to simplify the tax system and improve certainty for businesses making investment decisions.
Alongside this, the Government continues to review the operation of business rates, recognising concerns that the current system can discourage investment and expansion. Measures announced in the Budget include an increase in the threshold for full Small Business Rate Relief from £12,000 to £18,000 and an extension of transitional relief.
The Trading Allowance increases from £1,000 to £3,000. The allowance provides relief for trading and miscellaneous income and simplifies the system for those unincorporated businesses who choose to use the relief, where the allowances cover all their relevant income before expenses, as they will no longer have to declare or pay tax on this income. The trading income reporting threshold for Self Assessment will also be increased to £3,000.
Supporting Entrepreneurs
The Government’s policy paper, Entrepreneurship in the UK: Start. Scale. Stay., highlights a desire to make the UK a more attractive location for entrepreneurs and high-growth businesses. The focus is on improving access to capital, talent, innovation support and customers, whilst encouraging successful businesses to remain and grow in the UK.
Similarly, the earlier Tax Support for Entrepreneurs: Call for Evidence examined whether existing tax incentives remain effective in supporting founders and scale-up businesses. The consultation acknowledges concerns that many successful UK businesses move overseas as they grow and looks at whether the tax system can play a greater role in supporting long-term growth.
Employment Costs
On 1 April 2027, the National Living Wage will increase by 3.9% to £13.21 per hour.
How Whitings Can Help
Whilst the immediate changes may appear limited, the long-term implications could be significant. Decisions made now around ownership structures, investment and succession planning may have a substantial impact on future tax liabilities.
Disclaimer - All information in this post was correct at time of writing.
