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    Autumn Budget 2026, A Practical Checklist for Small Businesses

    Tax KnowledgeUpdated 13 October 2026

    Autumn Budget 2026, A Practical Checklist for Small Businesses

    Overview

    The Autumn Budget is scheduled for 28th October 2026, alongside the Office for Budget Responsibility's economic and fiscal forecast.

    Small businesses can prepare by reviewing remuneration, pensions, investment, cash flow and business structure. Base decisions on rules already in force and confirmed announcements, not rumours about what the Budget might contain.

    This guide covers general preparation for 2026/27. It is not personalised tax advice or a complete list of Government policy announcements.

    Detailed Content

    What is confirmed?

    The Budget date and accompanying OBR forecast are confirmed.

    The Government has also announced an additional 20% business rates reduction for eligible pubs, social clubs and live music venues in England from 2027/28. This is not a blanket reduction for all hospitality businesses. The largest live music venues will be excluded, with further details expected at the Budget.

    Do not confuse possible new Budget measures with changes already announced or in force. For example, dividend tax rates and Business Asset Disposal Relief changed from 6th April 2026 and must already be reflected in planning.

    What remains uncertain?

    Commentary about future tax changes is not the same as an official announcement or enacted law. Avoid irreversible payments, disposals or restructuring solely because of a rumour.

    Budget measures can take effect on announcement day, from the following April or from another specified date. Check each measure's legal status, effective date and transitional rules before acting.

    1. Review salary, dividends and director's loans

    Use current management accounts and a realistic profit forecast to assess how much the company can afford to pay.

    For 2026/27:

    • The standard Personal Allowance and employee National Insurance Primary Threshold are £12,570 a year, although personal circumstances can reduce the allowance.

    • The standard employer National Insurance Secondary Threshold is £5,000 a year, not £9,100.

    • The standard employer National Insurance rate is 15% above the applicable threshold.

    • Eligible employers may claim Employment Allowance of up to £10,500, subject to exclusions, including the relevant sole-director company restriction.

    There is no single optimal director's salary for everyone. Compare salary, employer NIC, corporation-tax relief, other personal income and Employment Allowance eligibility.

    Dividends require sufficient distributable profits, appropriate authorisation, minutes and dividend vouchers. Cash in the bank alone does not make a dividend lawful. Review any director's loan balance and applicable repayment deadlines; a loan is not a substitute for properly planned remuneration.

    2. Check current dividend tax rates

    For 6th April 2026 to 5th April 2027, the dividend allowance is £500. Above available allowances, dividend income is taxed at:

    Dividend tax band

    Basic rate - 10.75%

    Higher rate - 35.75%

    Additional rate- 39.35%

    Other income affects the band available. The dividend allowance does not create an additional basic-rate band. Review personal tax and company cash needs before bringing forward or deferring a payment, and never backdate dividend records.

    3. Review employer pension contributions

    The standard pension annual allowance is £60,000 for 2026/27, covering pension input across arrangements. A lower allowance may apply because of income or previous access to pension benefits. Carry-forward may be available subject to conditions.

    Employer contributions can exceed a director's salary, but corporation-tax relief and pension rules must still be checked. Consider existing contributions, affordability and the fact that pension funds normally cannot be accessed immediately.

    Do not rush to maximise contributions simply because the Budget is approaching. Seek appropriately authorised financial advice where a decision involves pension products or investments, alongside tax advice on the contribution.

    4. Review investment and capital allowances

    The Annual Investment Allowance is generally £1 million for a 12-month period, subject to eligibility and sharing rules. It can provide relief for qualifying plant and machinery, but not every asset purchase qualifies. Cars are excluded from AIA.

    Compare the timing of necessary purchases with your accounting period, cash flow and available allowances. A tax deduction does not make an unnecessary purchase worthwhile.

    5. Forecast Corporation Tax

    The standard non-ring-fence rates are:

    • 19% small profits rate, generally for qualifying profits up to £50,000.

    • 25% main rate, generally for profits above £250,000.

    • Main-rate tax reduced by marginal relief for eligible companies between the limits.

    The limits are reduced for short accounting periods and associated companies, and eligibility restrictions apply. Company accounting periods do not necessarily match the personal tax year.

    6. Check disposal and structure decisions

    The standard individual Capital Gains Tax rates are generally 18% and 24%, depending on taxable income and gains. A basic-rate taxpayer can pay 24% on gains above the available basic-rate band.

    Business Asset Disposal Relief applies at 18% for qualifying disposals from 6th April 2026, subject to eligibility and the lifetime limit.

    Before incorporating, restructuring or selling assets, compare the full tax, legal and administrative consequences. A limited company is not automatically the most tax-efficient structure.

    7. Protect cash flow

    • Update bookkeeping and reconcile bank, card and payment-platform accounts.

    • Follow up outstanding invoices and review supplier commitments.

    • Reserve money for VAT, payroll taxes, Corporation Tax and personal tax.

    • Check the actual VAT period and company deadlines rather than assuming calendar-quarter or tax-year dates apply.

    • Model any proposed payment or investment before committing.

    Key Dates

    28th October 2026 - Autumn Budget and OBR forecast

    31st October 2026- Usual paper Self Assessment deadline for 2025/26

    31st January 2027- Usual online Self Assessment deadline and balancing payment for 2025/26

    31st January 2027- First payment on account for 2026/27, where applicable

    5th April 2027- End of the 2026/27 personal tax year

    6th April 2027- Start of the 2027/28 personal tax year

    Individual circumstances can alter filing requirements. Company deadlines depend on the accounting period and applicable rules.

    Step-by-Step Procedure

    1. Gather the latest completed accounts, current management accounts, forecasts, payroll information, pension input, dividend records and director's loan balance.

    2. Separate decisions that need action now from those that can wait for official Budget documents.

    3. Model remuneration, pension contributions, investment and tax liabilities using current confirmed rules.

    4. Obtain tailored advice before significant payments, purchases, disposals or restructuring.

    5. Review the Budget documents after 28th October, checking effective dates and legal status before updating the plan.

    Frequently Asked Questions and Answers

    Is the Budget date confirmed?

    Yes. HM Treasury confirms 28th October 2026, with the OBR forecast published alongside it.

    Does that mean no tax changes are already confirmed?

    No. Previously announced and implemented changes still apply. Current 2026/27 dividend rates and Business Asset Disposal Relief must already be used in planning, regardless of what the forthcoming Budget announces.

    Should I change my dividends or pension payments now?

    Not solely because of speculation. Check distributable profits, company and personal cash needs, tax bands, pension limits and contribution conditions first.

    Does every hospitality business get the announced 20% rates reduction?

    No. The announcement concerns eligible pubs, social clubs and live music venues in England from 2027/28, with exclusions and further details to check.

    Is 31st March the personal tax-year planning deadline?

    No. The 2026/27 personal tax year ends on 5th April 2027. A company's accounting year may end on a different date.

    Can 360 Accounts help?

    360 Accounts can help review remuneration, bookkeeping, company forecasts, accounts and Self Assessment. We can explain the tax treatment of employer pension contributions and work alongside an appropriately authorised financial adviser where needed.

    Plan calmly, use confirmed rules and revisit decisions when the official Budget documents are published.

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    Watch

    Salary MythsTaking money out of your company is not always as simple as it looks on social media. Dividends can be a tax-efficient way to take profits, but they must come from available distributable profits and be properly declared. Paying yourself without understanding the rules can lead to unexpected tax bills and compliance issues. Company profits are also subject to Corporation Tax, while dividends may create a further personal tax liability. The solution is simple: understand the tax implications before taking money out, keep accurate records and plan how you extract profits from your business. Good tax planning is about making informed decisions, not following shortcuts that could cost you more in the long run.
    Sole Trader - Ltd CompanyChoosing the right business structure involves more than simply paying less tax. Operating as a sole trader or setting up a limited company can have very different implications for personal liability, reporting requirements, running costs and how you take money from the business. While a limited company may offer certain advantages, it also comes with additional responsibilities and administrative costs. The right choice depends on your circumstances, income and future plans. The solution is simple: consider the bigger picture before making a decision. Understanding your options early can help you choose a structure that supports your business as it grows. Good planning is not just about saving tax today. It is about building the right foundation for tomorrow.

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