The Autumn Budget 2026 changes came into effect on 6th April, the start of the new tax year. If you run a limited company, work for yourself, or employ staff, several of these updates will affect you directly. Some are straightforward, others require action. Here's a clear rundown of what's changed and what it means for your business.
Rachel Reeves delivered the Autumn Budget in November 2025, and from 6th April 2026, the majority of those announcements became reality. The start of the tax year is always a busy time for business owners, but this year feels particularly significant, the combination of payroll, tax, and reporting changes landing at once means there's more to keep on top of than usual.
The good news? None of this needs to be overwhelming. Understanding what's changed is the first step to making sure your business is set up correctly from the outset.
This is the change most business owners are already feeling. The Employers National Insurance rate is now 15%, and the Secondary Threshold, the point at which employers start paying NI on wages has dropped to £5,000 per year. Previously, that threshold sat at £9,100.
For any business with employees or directors on the payroll, this means higher NI bills than you'll have been used to. The impact varies depending on how many people you employ and at what salary level, but for many small businesses, this is a meaningful increase in the cost of taking on and retaining staff.
Good news for eligible businesses: the Employment Allowance has increased to £10,500, and the previous £100,000 NI liability cap that restricted eligibility has been removed, meaning more businesses than ever can now benefit. If your business qualifies, this allowance can offset a significant portion, or even all, of your Employers' NI bill. It's well worth checking whether you're eligible, as this could represent a meaningful saving for your business.
For businesses with employees, the National Living Wage has risen to £12.71 per hour for workers aged 21 and over. This is a 50p per hour increase on the previous rate. Combined with the higher Employers NI, the total cost of employment has risen noticeably this year, making payroll planning more important than ever.
One of the most significant structural changes arriving with this tax year is the rollout of Making Tax Digital (MTD) for Income Tax. From 6th April 2026, sole traders and landlords with total annual income above £50,000 must now keep digital records and submit quarterly updates to HMRC using compatible software, replacing the traditional annual Self Assessment return.
This is a fundamental shift in how income is reported to HMRC. Rather than a single annual submission, you'll now be sending updates four times a year, with a final declaration at year end.
If your income falls between £30,000 and £50,000, MTD for Income Tax becomes mandatory from April 2027, so now is a sensible time to start getting familiar with the requirements.
MTD for Corporation Tax has no confirmed start date, HMRC's previous plans for its introduction have been shelved, and limited companies should continue filing Corporation Tax returns through the existing CT600 process as usual.
A writing-down allowance is the way businesses claim tax relief on equipment, machinery and similar assets over time, and from April 2026 this relief will be slower, meaning the tax savings are spread over a longer period rather than being claimed as quickly as before. So, from April 2026, businesses will get tax relief more slowly on equipment and machinery purchases, meaning the tax savings are spread over a longer period rather than being claimed as quickly as before.
On the flip side, a new 40% First-Year Allowance was introduced from January 2026 for qualifying plant and machinery, allowing businesses to claim 40% of the cost as tax relief in the year of purchase rather than spreading the relief over time through writing-down allowances. If you’re planning significant investment in equipment, it’s worth considering the timing carefully to maximise the available tax reliefs.
If any of these changes feel unclear or you're unsure how they apply to your specific situation, you're not alone, and you don't have to figure it out by yourself.
At Simply Accounts, we work with small business owners, directors and sole traders every day, helping them stay on top of exactly these kinds of changes. Whether you need help reviewing your payroll setup in light of the new NI rates, getting ready for Making Tax Digital, or simply making sure your tax position is as efficient as possible for the year ahead, we're here for it.
From April 2026, sole traders and landlords with qualifying income over £50,000 must keep digital records and submit quarterly updates to HMRC using compatible software, replacing the traditional annual Self Assessment return. We're already in the process of setting this up for clients who qualify. If you're unsure whether this applies to you, or you'd like our help getting set up, get in touch with us today and we'll take care of it.
The new tax year is a natural point to review how your business is structured and make sure everything is working in your favour. With the Autumn Budget 2026 changes now fully in effect, taking action early can help you stay compliant and tax-efficient. Reach out to the Simply Accounts team today, and let's make sure you're starting 2026/27 on the right footing.
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