Autumn Budget 2026: Key Changes for Businesses and Employers

The Autumn Budget 2026 has introduced a range of proposed tax changes that could affect UK businesses, employers and employees.

From changes to business mileage allowances and VAT to electronic invoicing and tax administration, businesses should understand what the announcements could mean for their finances and future planning.

Key Budget Highlights

Business mileage rates

From April 2027, the mileage rate for business journeys exceeding 10,000 miles will increase from 25p to 35p per mile. The 55p rate for the first 10,000 miles remains unchanged.

Small business rates relief

From April 2027, valuation thresholds for small business rates relief on eligible retail, hospitality and leisure properties will increase, potentially benefiting qualifying businesses.

Research and development tax relief

From April 2027, companies will no longer need to submit a claim notification form for R&D tax relief, with further changes to reporting requirements planned.

VAT changes

Changes to the VAT reverse charge for overseas services are planned for April 2027. From October 2027, VAT obligations for certain UK businesses selling through online marketplaces are also set to change.

Electronic invoicing

The Government has outlined plans for VAT electronic invoicing from April 2029, with the aim of improving efficiency and reducing administrative burdens.

PAYE and VAT payments

From April 2029, employers will be required to have a Direct Debit instruction in place with HMRC for PAYE and VAT liabilities, while retaining flexibility to pay through other methods.

What Should Businesses Do Next?

Businesses should review their budgets, expense policies and accounting systems to understand how these changes may affect them. Keeping up to date with HMRC guidance and seeking professional advice where necessary will help ensure they are prepared.

At Dickson O’Brien Associates Ltd, we support businesses across the North West with finance and HR recruitment, helping organisations find the right talent to support their growth.

If you are looking to strengthen your finance or HR team, please get in touch to discuss your recruitment requirements.

Disclaimer: This article summarises selected measures from the Autumn Budget 2026 information provided and is for general information only. Measures may be subject to legislation and further guidance. Please consult HMRC or your professional adviser for advice specific to your circumstances.