Let’s be honest this autumn budget brings a fair few changes, and most of them mean your costs are going up. Nothing here is panic inducing, but it is something you need to be aware of so you’re not caught off guard.
As always, our job at Jenners is to help you stay one step ahead, understand what’s changing, and get your planning in order so you can keep running your business without nasty surprises. We are Herefordshire accountants but work all over the UK and beyond.
“The main takeaway is that costs are increasing in a few areas while tax relief is being trimmed back but it’s all navigable with the right guidance, Jenner’s have that by the bucket load“
Minimum wage increase 2026
From April 2026, staffing costs are going up across the board this means a wage bill increase:
- Minimum wage for 21+ rises from £12.21 to £12.71 that’s an extra 50p an hour.
- Pay for 18–20-year-olds increases by 8.5%, moving to £10.85 an hour.
- Under-18s and apprentices go from £7.55 to £8.00.
The government is pushing towards one flat adult minimum wage rate, so expect more changes down the line.
On top of that, tax thresholds for things like National Insurance and Income Tax are frozen until 2031.
This means:
As wages rise, more of people’s pay gets dragged into higher tax brackets. Your team will feel the squeeze and rising living costs usually turn into… you guessed it requests for higher pay.
Income from property and dividends is going up by 2%
A new set of tax rates for property income arrives from 6 April 2027:
- Basic property rate: 22%
- Higher property rate: 42%
- Additional property rate: 47%
And dividend tax is also rising from 6 April 2026:
- Ordinary dividend rate becomes 10.75%
- Upper dividend rate becomes 35.75%
Remember: dividends are taken after you’ve paid corporation tax, so this is an extra layer of cost for business owners.
Salary sacrifice pension changes
If you use salary sacrifice pensions to save tax (where employees swap part of their salary for higher pension contributions), those tax savings are being reduced.
Right now, neither employer nor employee pays National Insurance on the sacrificed amount.
But from April 2029, both sides will pay National Insurance on pension contributions over £2,000 a year.
If you’ve got several staff using this, the impact could add up.
Business rates 2026 – Good news if you run a shop or restaurant
At last something positive!
From April 2026:
- Retail, hospitality and leisure businesses with premises under £500,000 will see lower business rates, and this is a permanent change, not a temporary relief.
- Large warehouses/distribution centres will pay more to cover this (yes, Amazon-style operations… the online giants who pay little business rates because they don’t have a physical shop front).
There’s also a three-year grace period if you expand to a second property, meaning you won’t instantly lose your small business rates relief.
Less tax relief on equipment and business sales
Three key changes to be aware of:
- Tax relief on equipment drops from 18% to 14% from April 2026.
Less tax back when you buy vans, tools, machinery, or any other kit. - Selling your business to your employees?
The Employee Ownership Trust tax break is being halved from November 2025. You’ll now pay tax on 50% of the gain instead of getting full relief, still better than selling on the open market, but not as generous. - Capital Gains Tax Business Asset Disposal Relief (BADR) rises from 14% to 18% from April 2026.
Again more tax when you sell.
Looking forward…
Dates to write on the calendar:
- April 2028: Electric company cars will start paying a mileage tax:
- 3p per mile for EVs
- 1.5p per mile for hybrids
We still don’t know exactly how they plan to track this.
Essential and VERY IMPORTANT, from April 2029:
All VAT invoices must be sent electronically in a set format.
If you’re still using paper or manual invoicing… now is the time to choose a proper digital accounting system, You will need to be using VAT digital invoices fully by 2029, we can help you do this now, so you are prepared and if you do it early, life will be far easier.
HMRC small business focus (if you’re doing things right, don’t worry) If you are involved in Fraud or tax evasion be worried!
The government is putting serious money into tax enforcement, aiming to claw back £2.3 billion and small businesses are firmly in their sights.
Dedicated teams are being set up to investigate fraud and evasion.
This means:
If your accounts are clean and accurate, you have nothing to fear.
At Jenner’s, we help make sure your bookkeeping is solid, compliant and would stand up to an HMRC investigation. If you’re on our full services option, you’re already covered by our tax enquiry insurance. If you aren’t now is the time to upgrade.
Action Points
- Review your wage budgets for April 2026, the increases are significant.
- We’re continually monitoring your PAYE vs dividend mix to keep your tax bill as efficient as possible.
- If you own a shop, café or restaurant, check whether the new business rate reductions apply to you.
- Let us help you get your books and tax compliance watertight. HMRC enquiries can arrive without warning
- You can read the full budget HERE
Forewarned is forearmed and as always, Jenner’s will guide you through every step so you stay compliant, confident and in control.
Whether you’re growing, restructuring or just trying to stay organised, clear financial guidance can make all the difference. Jenner’s Tax & Business Advisers is here to support you with straightforward accounting and tax advice tailored to real businesses.
📞 Speak to our team on 01432 379988 or visit our Contact Us page to learn more.