On 28th October 2026, the Chancellor, John Healey, announced the Autumn Budget 2026. As the Budget was quite complex, the key highlights were covered in our first blog post. This post covers more of the announcements that may affect you and your business.
Here are some more of the updates that businesses need to be aware of.
- R&D Tax Relief Claims
From 1st April 2027, companies will no longer need to submit a Claim Notification Form before making a Research and Development (R&D) tax relief claim. The Additional Information Form will also be simplified from autumn 2027. You can read more about R&D tax credits in our blog post from March. - Founders’ Relief
A new Capital Gains Tax relief for founders will be introduced for qualifying sales of shares on or after 6th April 2027. It will give founders and early investors in high-growth companies a lower rate of Capital Gains Tax when they sell. The government is consulting on how the relief will work until 30th November 2026. - Dividends and Payments to Directors
There are no changes to the tax rates on dividend income in this Budget, following the increases from April 2026. The rates remain:
Ordinary Rate: 10.75%
Upper Rate: 35.75%
Additional Rate: 39.35%
Plans for new reporting requirements on payments made by companies to their directors and shareholders (known as participators) will not go ahead at this time. - Taxation of Company Distributions
From April 2028, the rules that decide whether money paid out by a company to its shareholders is taxed as income or as capital will be modernised. The government has said that genuine changes of ownership, including families passing on their business, will be protected. Draft legislation will be published in 2027. - Company Tax Returns
From 1st April 2028, any amendments to a Company Tax Return will need to be filed online. - Accommodation Offset
If you provide accommodation to your employees, the maximum amount that can be counted towards their minimum wage pay (known as the accommodation offset) will increase from £11.10 to £11.53 per day from April 2027. - Claiming Employment Expenses
Currently, employees who claim more than £2,500 of work expenses that have not been repaid by their employer must claim through Self-Assessment. From April 2028, this limit will be removed, so more employees will be able to claim tax relief through PAYE instead. HMRC will check the evidence before the relief is given. - Company Car Tax Rates 2030/2031
The Autumn Budget has set rates for Company Car Tax for 2030/2031. Appropriate Percentages (APs) for all vehicle bands, including zero-emission vehicles, will increase by 1 percentage point, up to a maximum AP of 40%. - Electric Vehicles
Electric Vehicle Excise Duty (eVED) will be introduced from 1st April 2028. This is a new mileage-based charge of 3p per mile for electric cars and 1.5p per mile for plug-in hybrid cars. Drivers will need to provide a mileage reading when they tax their vehicle.
It has also been confirmed that, from 1st November 2026, electricity from public electric vehicle charging points is charged at the standard 20% rate of VAT. - Fuel Duty and Vehicle Tax
The temporary 5p cut in fuel duty will end on 30th June 2027. From 1st July 2027, fuel duty will return to the rates that applied before March 2022 and will increase in line with inflation (RPI).
Vehicle Excise Duty for cars, vans and motorcycles will increase in line with inflation (RPI) from 1st April 2027. The reduced £1 annual rate of Vehicle Excise Duty for certain HGVs continues until 30th June 2027. - VAT on Energy-Saving Materials
The temporary 0% VAT rate on installing energy-saving materials, such as insulation, solar panels and heat pumps, in homes and charity buildings will end on 31st March 2027. From 1st April 2027, the VAT rate will return to 5%. Heat batteries will be added to the list of qualifying materials from the same date. This may be useful for landlords who are planning improvements to their rental properties. - Rental Income Reporting
The government will consult on asking third parties to report more information about property income to HMRC. This means it is more important than ever for landlords to keep accurate records of their rental income and expenses. You can read more about what landlords can claim in our blog post from August. - Pubs and Hospitality
Alcohol Duty will increase in line with inflation (RPI) from 1st February 2027. Small Producer Relief will become more generous for small brewers, cider makers and other small alcohol producers.
The rate of Machine Games Duty on higher-stake machines (those costing more than £1 to play, or with a maximum prize of more than £100) will increase from 20% to 25% from 1st April 2027. The rate for lower-stake machines, such as those commonly found in pubs, is not changing. - Till Systems
New mandatory software standards will be introduced for till and mobile point of sale systems, to tackle software that is used to hide sales from HMRC (known as till fraud). A start date has not yet been set, and HMRC will consult further in summer 2027. - Energy Support for Manufacturers
From April 2027, around 10,000 energy-intensive manufacturing businesses will receive a discount of between 20% and 25% on their electricity bills through the British Industrial Competitiveness Scheme, including a back payment for 2026/2027. - Households
Households in England in council tax bands A to D will receive a one-off £100 Household Energy Payment from January 2027.
The planned reduction in the Cash ISA limit will not go ahead, so it will remain at £20,000.
From April 2029, a new First Time Buyer ISA will replace the Lifetime ISA for new savers, with a 25% government bonus towards a first home worth up to £450,000. Existing Lifetime ISA holders can continue to use their accounts.
You can read more about the Autumn 2026 Budget on the Government website.