The Autumn Budget announced changes affecting staffing costs, business rates, property income and the tax relief available when selling a business.
For small business owners, the key is understanding how these measures affect your cash flow and future plans. Here are the announcements most relevant to Greystone Advisory clients.
Higher minimum wages from April 2027
The National Living Wage will rise to £13.21 per hour from 1 April 2027.
Employers should consider the wider cost alongside the hourly increase. Pension contributions, employer National Insurance and maintaining pay differences between roles can all add to the impact.
What to do: update your staffing budget before April and consider whether pricing, recruitment plans or working patterns need reviewing.
Selling a business? The available tax relief is reducing
The government plans to reduce the Business Asset Disposal Relief lifetime limit from £1 million to £500,000 for qualifying disposals from 6 April 2027.
This limits the amount of qualifying lifetime gains that can benefit from the relief. Previous claims also matter.
What to do: if you are considering selling your business, retiring or transferring ownership, seek advice early. Eligibility, timing and the structure of a transaction can materially affect the tax payable.
Higher tax rates for landlords and savers
From 6 April 2027, the announced tax rates on savings and property income will be 24%, 44% and 49%, depending on the applicable tax band and rules.
The effect on an individual’s tax bill will depend on their income, available allowances and wider circumstances.
What to do: review rental cash flow and the amount you set aside for tax. Savers should also consider whether they are making appropriate use of available tax-free allowances.
Business rates support for retail and hospitality
Qualifying retail, hospitality and leisure properties in England will benefit from increased Small Business Rate Relief thresholds from April 2027.
The threshold for 100% relief will rise to £18,000 rateable value, with tapered relief extending to £21,000. A two-year real-terms freeze on qualifying business rates bills was also announced.
What to do: check your property’s rateable value and eligibility. These measures are targeted, so businesses should confirm their entitlement before assuming their bill will fall.
Increased business mileage allowances
The 55p-per-mile rate for the first 10,000 qualifying business miles is being made permanent, applying from 6 April 2026.
The rate above 10,000 miles will increase to 35p from 6 April 2027.
These measures affect qualifying use of an employee’s or self-employed person’s own car or van for business.
What to do: review mileage claims and reimbursement policies, check the relevant effective dates and maintain accurate business-mileage records.
A higher allowance for small trading activities
The trading allowance will increase from £1,000 to £3,000 from 6 April 2027. The trading-income reporting threshold for Self Assessment will also rise to £3,000.
This could simplify tax administration for people with small side businesses or occasional trading income. The allowance relates to qualifying income before expenses, rather than simply providing an additional £3,000 deduction from profits.
What to do: check whether the allowance applies and whether claiming it is appropriate for your circumstances.
MTD penalty relief for those joining in April 2027
Taxpayers joining Making Tax Digital for Income Tax in April 2027 will receive no late-submission penalty points for their first four quarterly updates.
Digital record keeping and quarterly submissions will still be required.
What to do: continue preparing your bookkeeping, software and reporting arrangements ahead of your start date.
What should you do next?
The immediate priorities are to review employment costs, update cash-flow forecasts and assess any planned business sale or ownership changes.
Some announcements require legislation or further guidance, so the detail and effective dates matter.
Contact Greystone Advisory to discuss what the Autumn Budget means for you and your business. We can help you identify the relevant changes and plan your next steps.
This article reflects announcements published on 28 October 2026. It provides general information and should not replace advice tailored to your circumstances.
