--- title: "Autumn Budget 2026: what it means for your small business" description: Discover what Autumn Budget 2026 means for your small business. TTAM Ltd explains key tax changes, important dates and practical steps to plan ahead. image: https://www.ttam.ltd/hubfs/ChatGPT%20Image%201%20Nov%202026%2c%2010_56_31.png --- [Skip to content](https://www.ttam.ltd/blog/autumn-budget-2026-what-it-means-for-your-small-business#main-content)   [![](https://www.ttam.ltd/hs-fs/hubfs/3(1)1-png.png?width=399&height=94&name=3(1)1-png.png)](https://www.ttam.ltd?hsLang=en)[🏛️7 Marlwood Drive,Bristol, BS10 6SH](https://www.google.com/maps/place/TTAM+LTD/@51.5106638,-2.6179092,17z/data=!3m1!4b1!4m6!3m5!1s0x48719380231e7aa9:0xc5297ac3240923e8!8m2!3d51.5106638!4d-2.6153343!16s%2Fg%2F11xmkq1czy?authuser=0&entry=ttu&g_ep=EgoyMDI1MTExNy4wIKXMDSoASAFQAw%3D%3D)  ✉️[t](mailto:ttam.smarttax@gmail.com)[tam.smarttax@gmail.com](mailto:ttam.smarttax@gmail.com) ![](https://www.ttam.ltd/hs-fs/hubfs/image-png-4.png?width=27&height=27&name=image-png-4.png)[+44(0) 7887 04 30 20](tel:+447887043020) ![](https://www.ttam.ltd/hs-fs/hubfs/image-png-3.png?width=27&height=27&name=image-png-3.png) [+44 (0) 117 463 1777](tel:+441174631777)   ![Autumn Budget 2026](https://www.ttam.ltd/hs-fs/hubfs/ChatGPT%20Image%201%20Nov%202026%2c%2010_56_31.png?width=1672&height=941&name=ChatGPT%20Image%201%20Nov%202026%2c%2010_56_31.png) UK Tax Tax Avoidance UK business # Autumn Budget 2026: what it means for your small business ![Tervel Mihaylov](https://www.ttam.ltd/hs-fs/hubfs/Logo%20for%20a%20company%20n.png?width=48&height=48&name=Logo%20for%20a%20company%20n.png) Tervel Mihaylov November 1, 2026 **Autumn Budget 2026: what it means for your small business—and your next move** *TTAM’s practical guide for small limited company owners, with a useful update for anyone earning extra income on the side.* The Budget headlines arrive quickly. Working out which ones matter to your business takes a little longer—usually somewhere between answering customer emails, chasing an invoice and remembering why you opened that spreadsheet. For small business owners, the useful questions are straightforward: **What changes? When does it start? And should I do anything differently?** Following the Autumn Budget on 28 October 2026, here is our practical guide to the announcements worth putting on your planning list. **First, the dates: an announcement is not always an immediate change** The Budget does not introduce a general Budget-day increase in the headline rates of Income Tax, National Insurance or VAT. Individual measures have different start dates, with several relevant changes beginning in 2027 and the planned company distributions reforms following in 2028. [Source: HM Treasury](https://www.gov.uk/government/publications/budget-2026-document/budget-2026-html) That distinction matters. Something announced on 28 October should not automatically change how you run November’s payroll, record an equipment purchase or take money from your company. **Our advice:** check the effective date and the eligibility conditions before changing your plans. The date of the headline and the date that affects your accounts may be quite different. **Buying equipment? Check which tax relief you can actually use** The Budget announces two changes to capital allowances: - The main-rate first-year allowance will increase to **50% for eligible expenditure incurred from 1 January 2027**. - The main writing-down allowance will reduce to **12% from 1 April 2027 for Corporation Tax**, and **6 April 2027 for Income Tax**. These are different allowances with different conditions. The changes do not mean that every business purchase receives 50% relief, or that all equipment expenditure must be relieved gradually at 12%. [Source: HMRC’s capital allowances announcement](https://www.gov.uk/government/publications/reduce-the-main-rate-writing-down-allowance-and-increase-the-main-rate-first-year-allowance) Before moving a purchase into a different month, ask which relief applies to the particular asset and your business. A purchase should also make commercial sense. Spending money solely to reduce a tax bill can leave you with less cash and a very expensive item gathering dust. **TTAM’s take:** start with what your business needs, then work out the most sensible timing and tax treatment. **Employing staff? Build next April into your forecast** National Minimum Wage and National Living Wage rates are scheduled to rise by **3.9% from April 2027**. [Source: House of Commons Library](https://commonslibrary.parliament.uk/research-briefings/cbp-12252/) If your company employs staff, give yourself time to review the effect on your wage bill. Consider the full employment cost when preparing budgets, setting prices and quoting for work that will continue into the next financial year. This is particularly useful for businesses agreeing fixed-price contracts months in advance. A job that looks profitable today may leave a smaller margin once your costs change. You do not need a complicated forecast. A realistic one that you actually update is far more useful. **Business premises: check whether additional support applies** From April 2027, eligible retail, hospitality and leisure properties in England will receive more generous Small Business Rate Relief thresholds. Additional relief is also announced for qualifying pubs, social clubs and live music venues. [Source: House of Commons Library’s Budget summary](https://commonslibrary.parliament.uk/research-briefings/cbp-12252/) The important word is **eligible**. Your property, its use and the relevant conditions determine what support is available. If you operate from commercial premises, check your rates position when preparing next year’s cash-flow forecast. Avoid assuming that a headline about “small business relief” automatically covers every small business. **A side income? The Trading Allowance is getting bigger** Perhaps you give private lessons, sell handmade products or take on occasional freelance work. What begins as “just a little extra income” can soon become a regular activity—with records to match. The government has announced an increase in the **Trading Allowance from £1,000 to £3,000 from 6 April 2027**, alongside an increase in the trading income Self Assessment reporting threshold to £3,000. The measure is to be introduced through Finance Bill 2026–27. [Source: HMRC](https://www.gov.uk/government/publications/income-tax-increasing-the-trading-allowance/increasing-the-trading-allowance) For eligible individuals, this could provide additional tax relief and reduce administration. There are two points to keep clear: **It concerns qualifying personal trading income.** It does not give a limited company £3,000 of tax-free turnover or allow a director to withdraw an extra £3,000 tax-free. **The relevant figure is income before expenses.** Eligibility restrictions apply, including restrictions involving income from a company you own or control. Check your circumstances before claiming. [Source: HMRC’s trading allowance guidance](https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income) And because the increase starts in April 2027, it should not be applied early to the current tax year. **Meet George: one owner, two different tax questions** *George is a fictional example, but his questions may sound familiar.* George runs a small decorating limited company. Business is growing, and he is considering buying equipment and employing someone to help. Before ordering anything, he asks which capital allowances the company can claim. Before promising a salary, he checks the full employment cost and whether the company’s prices will support it. Separately, George gives guitar lessons to private customers in his own name, receiving £2,400 during the 2027/28 tax year. Assuming this is his only personal trading income and he meets the eligibility conditions, the proposed £3,000 Trading Allowance could cover those receipts. His decorating company’s income remains in the company’s accounts. His guitar lessons are considered separately as his personal trading activity. Same George. Different tax treatment. Sadly, being good with a paintbrush does not make the paperwork interchangeable. The lesson is useful: **understand who earns the income before deciding which allowance applies.** **Looking further ahead: taking value out of your company** The government plans to modernise the rules for distributions from companies to individual shareholders from **April 2028**, with draft legislation expected for technical consultation in 2027. The scope extends beyond ordinary dividends to other transactions through which shareholders receive value, including share buybacks. [Source: government distributions factsheet](https://www.gov.uk/government/publications/modernisation-of-the-uks-distributions-framework/modernising-the-distributions-framework-factsheet) If you are considering restructuring, a share buyback or passing your business to family members, put this on your advice list early. A major transaction deserves a review before documents are signed and money moves. **How TTAM Ltd Can Help** A Budget makes headlines. What matters is what it means for your business—and the money you take home. At TTAM Ltd, we look beyond calculating today’s tax bill. We help you understand which changes affect you, when they apply and what deserves attention before your next business decision. Whether you run a small limited company, work for yourself or earn extra income alongside your main job, we can help you: - Review your tax position and prepare for relevant changes. - Plan salary, dividends and pension contributions with the tax implications in mind. - Check available reliefs before buying business equipment. - Keep your accounts, payroll and Self Assessment on track. - Plan ahead for tax payments, with a clearer view of your cash flow. Sometimes a conversation before a decision can be more useful than a calculation afterwards. Know where you stand. Understand your options. Plan ahead. Get in touch with TTAM Ltd to discuss what the Autumn Budget means for you and your business. **TTAM Ltd — Expert Accounting for Peace of Mind.** ***This article provides general information only and is not individual tax, pension or investment advice. Rules depend on individual circumstances and can change. TTAM Ltd does not provide regulated investment advice.*** **TTAM Ltd | Tax, Trust, Accounting, & Management 📍 7 Marlwood Drive, Brentry, Bristol, BS10 6SH 📧 [ttam.smarttax@gmail.com](mailto:ttam.smarttax@gmail.com) | 🌐 [www.ttam.ltd](https://www.ttam.ltd/?hsLang=en) 📞 +44 (0) 117 463 1777 | +44 (0) 7887 04 30 20**   ## Share this post [mailto:https%3A%2F%2Fwww.ttam.ltd%2Fblog%2Fautumn-budget-2026-what-it-means-for-your-small-business](mailto:https%3A%2F%2Fwww.ttam.ltd%2Fblog%2Fautumn-budget-2026-what-it-means-for-your-small-business) ## Keep reading ### [![Do you have a gaps in your Nino?](https://www.ttam.ltd/hs-fs/hubfs/canva.png?width=1536&height=1024&name=canva.png) UK Tax HMRC Self Assessment Check Your State Pension: Do You Have Gaps in Your NIn Record?](https://www.ttam.ltd/blog/check-your-state-pension-do-you-have-gaps-in-your-nin-record?hsLang=en) ### [![](https://www.ttam.ltd/hs-fs/hubfs/Employment%20Contract%20Changes%20in%202026.png?width=1536&height=1024&name=Employment%20Contract%20Changes%20in%202026.png) Tax Compliance HMRC Bristol Community Employment Contract Changes in 2026](https://www.ttam.ltd/blog/employment-contract-changes-in-2026?hsLang=en) --- Privacy Policy ·Terms and Conditions of Business· © 2025 Ttam Ltd. 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