Yet another Budget has landed, bringing a new batch of tax tweaks designed to keep business owners suitably alert — or, let’s be honest, quietly contemplating a strategic nap. This time the OBR also helped themselves to an early leak, proving that even the Chancellor can’t have nice things.

But the delivery method doesn’t matter. What really matters is what this all means for you — not the political theatre around it.

A Tax Squeeze for Property Owners and Savers

From 6 April 2027, income tax rates for property income and savings income will each increase by two percentage points. Yes — yet another “gentle nudge” toward paying more tax.

New rates from 2027/28:

(England and NI only; Scotland and Wales will do their own thing, as usual.)

Own a house worth over £2m? Congratulations — and condolences. A new mansion tax will add a £2,500–£7,500 council tax surcharge.

Landlords: add this to the bonfire of FHL relief, SDLT hikes, renter protections, and general existential dread.
If you want to know what this means for your portfolio, we can run the numbers before you run for the hills.

Dividend Tax Rates Rise From 2026

Shareholders, brace yourselves:

• Basic rate: 10.75%
• Higher rate: 35.75%

If you pay yourself via dividends, it might be time to revisit the classic “salary vs dividends vs crying softly into a spreadsheet” debate. We can help you model what’s most tax-efficient (minus the crying).

Payroll Costs Set to Climb (Again)

New National Minimum Wage rates from 1 April 2026:

• 21 and over: £12.71
• 18–20: £10.85
• Under 18: £8.00
• Apprentices: £8.00

That’s a 4.1%–8.5% rise, depending on age bracket. Translation: check your budgets now before April arrives and your payroll numbers start giving you side-eye.

Salary Sacrifice Pension NIC Exemption Capped from 2029

From April 2029, the NIC-free portion of pension salary sacrifice will be capped at £2,000 per employee per year.

You still get tax relief — but NIC savings above that amount vanish.
A long way off, yes, but worth factoring into long-term reward planning so future-you doesn’t end up yelling at past-you.

IHT Relief Tweaks for Business & Agricultural Assets

From 6 April 2026:

• Full APR/BPR relief capped at £1m combined
• Anything above that gets 50% relief
• Transfers between spouses become more flexible (up to £3m combined relief)

As ever with inheritance tax: planning early is smart; panic gifting is not.

Capital Allowances Adjustments

Some Budget changes that may (or may not) make your eyes glaze over:

• AIA stays at £1m
• WDA drops to 14% (from 18%)
• A new 40% FYA arrives January 2026
• 100% FYAs for EVs/chargers extended to April 2027

If you’re planning big purchases, the timing could decide whether you save tax — or make HMRC’s day.

Business Rates: Retail, Hospitality & Leisure

From 1 April 2026, two new discounted multipliers replace the current 40% RHL relief for properties under £500k rateable value.
Larger properties will face a higher multiplier to “balance things out”, which is government code for sorry in advance.

Mandatory E-Invoicing From 2029

All VAT invoices must be electronic from 2029. Real-time reporting might be coming later, but not yet.

If you’re still manually typing invoices in Word, this is your sign to move to actual accounting software.

In Summary

Lots of talk about “growth”, but the biggest growth appears to be in tax bills. With thresholds frozen and new rates kicking in gradually, now’s the time to get ahead of planning for 2026 and beyond — before these changes sneak up on you like an HMRC brown envelope.

We’re here to help navigate it all, calmly, clearly, and with only minimal sarcasm.

National Minimum Wage Rates for 2026 Confirmed

Another year, another increase:

What to do now:

• Check who’s affected
• Update budgets and forecasts
• Review pricing
• Prepare for “salary compression” conversations (“If they’re going up, shouldn’t I…?”)

We can help you model the impact if needed.

FSCS Protection Limit Rising to £120,000

From December, the FSCS protection limit increases to £120,000 per depositor, per bank.

Great news if you’re sitting on chunky cash reserves — but also a nudge to check:

• If your bank actually has multiple brands under one licence
• Whether spreading cash increases protection
• Whether your business is hoarding more cash than it needs
• Whether investments or tax-efficient extraction might make sense

We can help review your cash strategy if you’re unsure.

NCSC Launches Free Cyber Action Toolkit

Good cybersecurity doesn’t require a PhD or a panic attack. The NCSC’s new toolkit helps small businesses secure themselves with simple, high-impact steps — no jargon, and no need to de-code terrifying government PDFs.

If you want help assessing your risk or preparing for certifications, we can guide you through it.

Categories: Positive Accountant