The Autumn Budget was on Wednesday 28 October.

After the headlines, the commentary and a lot of jargon, what does it actually mean for small businesses, sole traders, company directors and landlords? 🤔

Here’s our plain-English summary of the key points. 👇

🔹 No increase to the main rates of income tax, National Insurance, dividend tax or Corporation Tax

🔹 Allowances and thresholds stay frozen, which still pulls more people into higher rates as incomes rise

🔹 Landlords and savers face a bigger tax rise from April 2027 than first expected

🔹 Business Asset Disposal Relief is being cut back for people selling a business

🔹 Capital allowances are changing, with a mix of good and bad news

Most changes don’t start until April 2027, so there’s time to plan. 👍

Good news first:

✅ Corporation Tax stays at 25% (main rate) and 19% (small profits rate)

✅ Dividend tax rates are unchanged at 10.75%, 35.75% and 39.35%, and the £500 dividend allowance remains

✅ Employer National Insurance rates and thresholds are unchanged

The government has also said it plans to reform how some company distributions are taxed from April 2028, including capital reductions and share buy-backs. Details will follow, so if you’re planning anything like that, speak to us early.

This is the part that surprised many people. 😬

From April 2027, tax rates on property and savings income will rise by four percentage points (not the two announced last year):

🔹 Basic rate: 24% 🔹 Higher rate: 44% 🔹 Additional rate: 49%

Tax relief on mortgage interest for residential lets will move to 24% to match.

On a positive note, the £20,000 ISA limit stays as it is, and the planned cut to cash ISAs has been scrapped.

✅ The trading allowance rises from £1,000 to £3,000 from 6 April 2027

✅ Making Tax Digital for Income Tax extends to those with qualifying income over £30,000 from April 2027, based on your 2025/26 income

✅ First-year MTD users won’t get late-submission penalty points for their quarterly updates in 2027/28

If you might be affected, see our guide on Making Tax Digital.

There are changes to capital allowances:

🔹 From 1 January 2027: the first-year allowance on qualifying plant and machinery rises from 40% to 50%

🔹 From April 2027: the main writing-down allowance falls from 14% to 12%

🔹 The 100% allowance for new electric cars and chargepoints ends on 31 March 2027 for companies (5 April for sole traders and partnerships)

The £1 million Annual Investment Allowance and full expensing for companies remain.

If you’re planning a big purchase, the timing could matter.

🔹 The National Living Wage rises to £13.21 an hour from April 2027

🔹 Payrolling of company cars, vans, fuel and medical benefits becomes mandatory from 6 April 2027, with Class 1A National Insurance paid each pay period

🔹 The tax-free mileage rate above 10,000 miles rises from 25p to 35p from April 2027

🔹 The Employment Allowance stays at £10,500

🔹 Business Asset Disposal Relief stays at 18%, but the lifetime limit is cut from £1 million to £500,000 for disposals from 6 April 2027

🔹 A new Founders’ relief (10% Capital Gains Tax on qualifying gains up to £10 million) is planned from April 2027, but the details are still to be confirmed

🔹 The Inheritance Tax nil-rate band remains frozen

If a sale is on the horizon, the April 2027 date is worth knowing about.

Budget announcements are not the same as law. Some measures need legislation, some are still being consulted on, and the detail can change.

That’s why we’d always advise:

✅ Don’t rush into big decisions because of a headline

✅ Check the start date. Most of these changes apply from April 2027

✅ Review your plans before the end of this tax year on 5 April

At Llewellyns Chartered Certified Accountants, we’ll explain what the Budget means for your business, in plain English, with no scare tactics. 😊

We offer a free, no-pressure initial chat, so you can find out where you stand.

📍 Cardiff: 02920 624230 📍 Tonypandy: 01443 303230 📧 info@llewellyns.co.uk