Autumn Budget 2026: What UK Businesses Should Prepare For Before the Chancellor Speaks
What is already confirmed before the Budget?
Some tax and business-cost changes that owners may associate with the upcoming Budget have already been announced or legislated. They are part of the existing framework, not new Budget-day promises.
Corporation tax and investment
The government’s Corporate Tax Roadmap sets out commitments to retain the main corporation tax rate at 25%, the small-profits rate at 19% and the current marginal-relief structure. It also commits to maintaining Full Expensing, the Annual Investment Allowance, R&D relief rates and the Patent Box.
Finance Act 2026 sets the main corporation tax rate for financial year 2027 at 25%, with a 19% small-profits rate. The relevant rate and any relief available to a particular company can depend on its profits, accounting period and circumstances.
For capital spending, GOV.UK confirms that the main-pool writing-down allowance fell from 18% to 14% for corporation tax accounting periods beginning on or after 1 April 2026. The special-rate pool remains at 6%. The rules differ by asset type, so check the capital allowances guidance before relying on an assumed tax treatment.
R&D relief
The Corporate Tax Roadmap commits to maintaining R&D relief rates. Separately, HMRC launched a voluntary, targeted SME R&D advance-assurance pilot in May 2026. It allows eligible applicants to seek assurance on up to two selected areas of a project. It does not replace the claim process or guarantee that every project will qualify. See the HMRC guidance on targeted R&D advance assurance.
Business rates
A business-rates package for 2026/27 in England has already been announced. It includes lower retail, hospitality and leisure multipliers for qualifying properties below £500,000 rateable value, a higher multiplier for properties at or above that threshold, and transitional support for some businesses facing increases.
Eligibility and the amount of support depend on the property and the relevant scheme. The rules are not the same across the UK’s devolved nations. Owners should check the official business-rates announcement and confirm details with their local authority.
Employment costs and dividends
The government has confirmed that certain income tax and equivalent National Insurance thresholds will remain at their current levels up to 5 April 2031. Budget 2025 also set out the employer National Insurance secondary threshold at £5,000 from April 2028 to April 2031. These are existing policy announcements; they should not be mistaken for measures newly introduced on 28 October. Read the GOV.UK threshold update.
Finance Act 2026 has already increased the dividend ordinary rate to 10.75% and the dividend upper rate to 35.75% for 2026/27 and later years. Check the current HMRC dividend tax guidance for the applicable rates and allowances. Any further dividend-tax change in the Budget remains unconfirmed.
Key Budget terms explained
Budget coverage is full of jargon. If you have searched for what one of these terms means, here is a plain-English glossary of the ones that matter most to UK business owners.
Corporation tax
The tax a limited company pays on its profits. For the current financial year the main rate is 25% and the small profits rate is 19% for companies with profits of £50,000 or less.
Small profits rate
The reduced 19% corporation tax rate that applies to companies with taxable profits at or below £50,000. Larger companies pay the main rate; those in between pay a blended amount.
Marginal relief
The mechanism that smooths the transition for companies with profits between £50,000 and £250,000, so they pay an amount between the small profits rate and the main rate rather than jumping straight from one to the other.
Capital allowances
Tax reliefs that let a business deduct some or all of the cost of assets (equipment, machinery, vehicles, fixtures) from its taxable profits. The main system is called capital allowances; the two best-known accelerators are below.
Full Expensing
A 100% first-year deduction: a company buying new, unused main-rate plant and machinery can write off the entire cost against profits in the year of purchase, rather than spreading it over several years.
Annual Investment Allowance (AIA)
A 100% deduction on most plant and machinery purchases up to £1 million of spending per year. Unlike Full Expensing, the AIA also covers second-hand assets.
Writing-down allowance (WDA)
The annual percentage deduction for asset costs not covered by Full Expensing or the AIA. The main pool rate is currently 14% (reduced from 18% for periods beginning on or after 1 April 2026) and the special-rate pool is 6%.
Main pool and special-rate pool
The two groups assets fall into for writing-down allowances. The main pool covers most plant and machinery; the special-rate pool covers things like integral features of buildings and long-life assets, and attracts the lower 6% rate.
Business rates
The tax on non-domestic premises (shops, offices, factories). It is administered by local authorities in England and by the devolved administrations elsewhere, so rules differ across the UK.
Rateable value
The official estimate of a property’s annual open-market rental value. Your business rates bill is calculated by applying the multiplier to this figure.
Business rates multiplier
The pence-per-pound figure set by the government each year that is applied to a property’s rateable value. From 2026/27, England has lower multipliers for qualifying retail, hospitality and leisure properties below £500,000 rateable value and a higher multiplier for properties at or above that threshold.
Dividend ordinary rate and dividend upper rate
The tax rates applied to dividend income. Finance Act 2026 set the ordinary rate at 10.75% and the upper rate at 35.75% for 2026/27 onwards, applying above the dividend allowance.
Employer National Insurance (secondary threshold)
The level of employee earnings above which employers start paying secondary Class 1 National Insurance contributions. Budget 2025 confirmed this threshold will be £5,000 from April 2028 to April 2031.
R&D relief
Tax relief for companies carrying out qualifying research and development. SMEs and large companies claim under different schemes, and HMRC’s targeted advance-assurance pilot (launched May 2026) lets eligible SMEs seek assurance on up to two selected areas of a project before claiming.
Office for Budget Responsibility (OBR)
The independent body that publishes the Economic and fiscal outlook alongside each Budget: its forecasts for the economy and public finances provide the official context for the Chancellor’s statement.
Economic and fiscal outlook
The OBR’s report published on Budget day, setting out its economic forecast and an assessment of whether the government’s fiscal plans are achievable.
What is still speculation?
Until the Chancellor speaks and the supporting documents are published, businesses should not treat predictions as policy. At the time of writing, further changes to corporation tax, R&D relief rates, employer National Insurance, dividend tax or business rates have not been confirmed in the government sources reviewed for this guide.
So what are the serious commentators actually discussing? The RSM UK predictions and Grant Thornton’s pre-Budget analysis point to a few themes:
- Capital gains tax is the main area of speculation. The Chancellor has publicly rejected calls to fully align CGT with income tax rates, but analysts still flag possible rate increases, relief changes or new rules around business disposals and asset transfers on death.
- Targeted measures rather than sweeping reform. The government’s manifesto commitments rule out rises in the main rates of income tax, employee National Insurance, VAT and corporation tax, which narrows where the Chancellor can look for revenue.
- HMRC compliance and digital reporting, including e-invoicing roadmaps, are frequently mentioned as likely areas.
- Business rates refinements may build on the already-announced 2026/27 package for England.
These are speculation, not confirmed measures, and the professional firms publishing them say so themselves. Avoid making significant decisions solely in response to headlines or rumours. Reassess once official Budget documents are available and seek advice based on your own circumstances.
Practical steps to take before 28 October
There is no need to rush into a transaction just because a Budget is approaching. A measured review can help you respond more confidently once the detail is known.
- Review cash flow and forecasts. Map expected income, payroll, supplier costs, debt repayments and planned investment. Consider how changes to costs could affect your cash position.
- Prepare a list of capital purchases. Note what you are considering buying, the business purpose, expected purchase date and likely cost. Do not assume that bringing a purchase forward or delaying it will produce a tax advantage: allowances can depend on the asset, timing and accounting period.
- Check your accounting dates. Make sure you know your company’s accounting period and key filing dates. These details can affect how tax rules apply and help your accountant assess any Budget measures once announced.
- Review dividend plans with your adviser. Check that proposed dividends are properly considered against your company’s position and documentation, and discuss the tax implications before making a decision. Avoid treating a possible future rate change as a reason to act without tailored advice.
- Check payroll and premises costs. Review employee costs and, if you occupy business premises in England, check your current rateable value and any relevant relief. Eligibility may depend on the property and local rules.
- Keep records together. Organise management accounts, payroll information, investment plans and relevant company records so that you can provide a clear picture to your accountant or adviser.
How Your Business Admin can support your preparation
A Budget can bring uncertainty, but preparing your company information and understanding your priorities can make the next steps more manageable. Your Business Admin (https://yourbusinessadmin.co.uk), the trading name of NP UK Corporate Services Ltd, supports businesses with corporate services, company secretarial matters and ongoing business administration.
We can help you organise corporate records and connect you with our team to discuss the appropriate next step. For accounting or tax questions, speak to a suitably qualified tax professional. For more on financial planning and business growth, see our article on strategic capital finance for growing businesses and our accounting and bookkeeping service information.
Contact Your Business Admin to connect with our team.
Frequently asked questions
When is the Autumn Budget 2026?
HM Treasury has confirmed the Budget will take place on 28 October 2026. The date is confirmed; individual measures are not confirmed until officially announced.
What does the Budget mean for small businesses?
The effect will depend on your business, workforce, premises, investment plans and financial position. Some relevant tax and business-rates changes have already been confirmed, while further measures remain unknown until Budget day.
Should I bring forward a dividend or capital purchase?
There is no general answer. Tax treatment can depend on your company’s circumstances, the transaction and its timing. Discuss any proposed decision with your accountant or tax adviser rather than acting on speculation.
What does Your Business Admin (https://yourbusinessadmin.co.uk) include, and what does it cost?
This article is a general guide, not a paid tax-advice service. Your Business Admin provides corporate services and business administration support; service scope and pricing depend on the service you need. Contact our team to discuss your requirements. We do not provide tax advice through this article.
Who can contact the team, and what happens next?
Startups, SMEs and company owners can get in touch to discuss the corporate support they are looking for. Our team can help identify an appropriate next step or connect you with the relevant support. Any Budget-specific tax questions should be directed to a qualified tax professional.
What is the difference between the small profits rate and marginal relief?
The small profits rate is the flat 19% corporation tax rate for companies with profits of £50,000 or less. Marginal relief applies to companies with profits between £50,000 and £250,000, calculating a blended rate between 19% and 25% rather than an abrupt jump.
What is the difference between Full Expensing and the Annual Investment Allowance?
Both give a 100% first-year deduction on qualifying plant and machinery. Full Expensing applies to new and unused main-rate assets; the Annual Investment Allowance also covers second-hand assets, up to £1 million of annual spending.
What does rateable value mean for my business rates bill?
It is the official estimate of your property’s annual open-market rent. Your local authority applies the government-set multiplier to that figure to calculate your bill, so changes to the multiplier or to relief schemes affect what you pay even if your rateable value stays the same.
This article provides general information only and is not tax, financial or legal advice. Government guidance and legislation may change. Confirm how any measure applies to your business with an appropriately qualified adviser.