The Autumn Budget was delivered on 28 October 2026. For small companies, sole traders and employers, the useful question is which announcements affect your costs, tax records and plans. Here are four areas to review with your accountant.
Important: these are Budget announcements, with future start dates. Measures requiring legislation are not all law today. Keep using the rules for the relevant tax year until the changes take effect. The official Budget document sets out the detail.
1. Employers: plan for April payroll costs
From 1 April 2027, the announced National Living Wage is £13.21 an hour; the 18–20 minimum rate is £11.27.
Review staff hours, age bands and pay arrangements before updating your wage budget. Include the knock-on effect on holiday pay, pension costs and employer contributions where relevant. Do not change October payroll simply because a future rate has been announced. Our payroll service can help you prepare.
2. Sole traders: a higher trading allowance is planned
The government plans to raise the Trading Allowance from £1,000 to £3,000 from 6 April 2027, through Finance Bill 2026–27.
That is not a reason to stop keeping records or assume you no longer need a return. Check eligibility, other income and whether claiming actual expenses is more appropriate. In particular, do not apply the proposed allowance to your 2025/26 Self Assessment return. Discuss your position through our Self Assessment or sole trader accounting service.
3. Buying equipment: check the relief and timing
The Budget proposes a 50% main-rate first-year allowance from 1 January 2027. The main writing-down allowance would become 12% from 1 April 2027 for Corporation Tax and 6 April 2027 for Income Tax.
These are tax deductions, not a cash refund equal to the percentage shown. Before committing to a purchase, compare the allowances available for that particular asset and business, and check when the expenditure counts. Avoid buying equipment only to obtain relief. Our Corporation Tax support can help put the tax treatment alongside the commercial cost.
4. R&D: simpler forms are planned
The government plans to remove the R&D Claim Notification Form from 1 April 2027 and simplify the Additional Information Form from autumn 2027.
Administrative simplification does not mean every innovative project qualifies. Continue recording the technical work, uncertainties and costs, and meet the requirements applying to current claims. See our R&D tax relief service for support.
Your practical Budget checklist
Update your cash-flow forecast, list planned investment and flag any tax-year assumptions that need checking. Separate changes affecting your business from headlines aimed at other sectors. Agree a short action list with dates and responsibilities, rather than making rushed decisions on Budget day.
For help understanding what applies to your circumstances, book an introductory call with Griffith Accountants.
Reviewed and updated: 28 October 2026. Based on HM Treasury’s Budget 2026 document, including sections 4 and 7. This is a focused small-business summary, not a complete list of measures or personalised tax advice.
