Before the Budget — this page will be updated on 28 October as the announcements are published. Everything below is what is already law or officially announced as of 20 October 2026. Nothing on this page is a prediction of what the Chancellor will say.
- Budget 2026 is on Wednesday 28 October 2026. The Chancellor, John Healey, confirmed the date in a letter to the Treasury Select Committee published by HM Treasury on 31 July 2026.
- Several small-business changes are already fixed in law or announced, whatever the Budget says: dividend tax of 10.75% / 35.75% / 39.35% since 6 April 2026, and Making Tax Digital for Income Tax for gross income over £30,000 from 6 April 2027 and over £20,000 from 6 April 2028.
- Income tax and self-employed National Insurance thresholds are frozen at £12,570 and £50,270 until April 2031, announced at Budget 2025.
- Employers pay 15% National Insurance above £5,000 a year per employee, with an Employment Allowance of up to £10,500 (2026/27 rates).
- The VAT registration threshold is £90,000, unchanged since 1 April 2024. We found no official announcement of a change or of a fixed freeze period.
- The government has said two things will come at this Budget: the e-invoicing roadmap for mandatory VAT e-invoicing from April 2029, and the final fuel duty rates from 1 January 2027.
Budget 2026 on 28 October will add to a list of small-business changes that is already long: higher dividend tax since April 2026, Making Tax Digital reaching sole traders on £30,000 in April 2027, frozen tax thresholds to 2031 and Companies House software-only accounts from April 2028. The only Budget 2026 items the government has itself pre-announced are the e-invoicing roadmap and the final fuel duty rates. Anything else you read before 28 October is speculation, and we will replace it with the official documents on the day.
This page is for sole traders, landlords with a trade on the side, and directors of small limited companies who want to know what Budget 2026 means for them. Today it does two jobs: it lists what is already confirmed for 2026/27 and 2027/28, with a gov.uk source for each item, and it sets out exactly what we will check on Budget day.
On 28 October we will update this same page from the Budget documents as they are published on gov.uk. The checklist table further down shows each topic, today’s rule and where the answer will come from. Bookmark the page; the address will not change.
When is Budget 2026, and is the date confirmed?
Yes. HM Treasury published a letter from the Chancellor to the Treasury Select Committee on 31 July 2026 that says, in full: “The Budget will be held on 28 October 2026.” That is a Wednesday. John Healey has been Chancellor of the Exchequer since 20 July 2026, according to the gov.uk ministers page, so this is his first Budget.
We have not found a gov.uk notice giving the time of the statement. Budgets are normally delivered in the House of Commons after Prime Minister’s Questions, and the Office for Budget Responsibility (OBR, the official forecaster) publishes its forecast on the same day. The documents that matter for small businesses, chiefly the Budget report and the “Overview of tax legislation and rates” (OOTLAR, the line-by-line list of tax measures), go up on gov.uk once the Chancellor sits down.
A few websites have given 26 November as the date. That was the date of Budget 2025 and is not supported by any official source for 2026.
What is already confirmed to change for small businesses in 2026/27 and 2027/28?
These are the changes that will happen unless a future Budget reverses them. Each comes from gov.uk or, for employment law, from Acas, the government-funded employment advice service. We have marked whether each is already in force or still to come.
| Change | Who it affects | Date | Status |
|---|---|---|---|
| Dividend tax: 10.75% basic, 35.75% higher, 39.35% additional (was 8.75% / 33.75% / 39.35%) | Ltd owner-directors paid in dividends | 6 April 2026 | in force |
| Corporation tax: 19% up to £50,000, 25% above £250,000, marginal relief between; rates kept for the year from 1 April 2027 | Limited companies | 1 April 2027 (rates set) | legislated |
| Corporation tax late filing penalties doubled (£100 to £200, £200 to £400) | Limited companies | Returns due on or after 1 April 2026 | in force |
| Employer NI 15% above £5,000 a year; Employment Allowance £10,500 | Anyone running payroll | 6 April 2025 | in force |
| Personal allowance £12,570 and higher-rate threshold £50,270 frozen; NI thresholds for the self-employed frozen at the same levels | Everyone with income | To April 2031 | announced, Budget 2025 |
| Making Tax Digital for Income Tax: gross self-employment and property income over £30,000 | Sole traders, landlords | 6 April 2027 | in law |
| Making Tax Digital for Income Tax: over £20,000 | Sole traders, landlords | 6 April 2028 | in law |
| Cash ISA limit £12,000 a year for under-65s, within the £20,000 overall ISA limit | Savers | 6 April 2027 | announced |
| Companies House identity verification: 12-month transition for existing directors and PSCs | Ltd directors and people with significant control | Started 18 November 2025, transition ends 17 November 2026 | in force |
| Companies House accounts: software-only filing, profit and loss for small and micro companies, abridged accounts abolished | Limited companies | April 2028 | announced |
| Mandatory e-invoicing for all business-to-business and business-to-government VAT invoices | VAT-registered businesses | April 2029 | announced |
| NI on salary-sacrificed pension contributions above £2,000 a year | Employers and employees using salary sacrifice | 6 April 2029 | announced |
“In force” means the rule applies today. “Legislated” or “in law” means Parliament has passed it but the start date is in the future. “Announced” means the government has committed to it, but some legislation or detail is still to come, so the Budget could in principle change it.
What does Budget 2026 mean for sole traders before it is even announced?
If you are self-employed, three things are already settled for the next two years, and none of them depends on 28 October.
Making Tax Digital is coming down the income scale
Making Tax Digital for Income Tax (MTD, HMRC’s system of digital records and quarterly updates sent from software) has applied since 6 April 2026 to people whose gross self-employment and property income was over £50,000 in 2024/25. The next group is anyone over £30,000 in their 2025/26 tax return, who must start on 6 April 2027. Then anyone over £20,000 in 2026/27 starts on 6 April 2028. “Qualifying income” is turnover before expenses, not profit. Our Making Tax Digital for Income Tax guide walks through the test, and the £30,000 threshold explained covers the April 2027 group.
HMRC has said there are no penalties for missing a quarterly update deadline in 2026/27, the first year. Budget 2025 said the new points-based penalty regime will apply to all Income Tax Self Assessment taxpayers not already in MTD from 6 April 2027. The next quarterly deadline for people already in MTD is 7 November 2026; see MTD quarterly update deadlines.
Income tax and Class 4 thresholds stay where they are
The personal allowance is £12,570 and the higher-rate threshold £50,270. Budget 2025 extended the freeze to the 2030/31 tax year. Class 4 National Insurance is 6% on profits between £12,570 and £50,270 and 2% above, and the profit limits are frozen to April 2031 too. Class 2 is no longer paid in cash: if your profits are £7,105 or more it is treated as paid, which protects your State Pension record.
A frozen threshold means that if your profit rises with inflation, more of it is taxed at 20% or 40% each year. This is sometimes called “fiscal drag”. It is a tax rise that needs no announcement, which is why the income tax row in our Budget day table matters even if nothing is said.
Paying tax through PAYE from 2029
If you are self-employed and also have a job or pension, Budget 2025 announced that from April 2029 HMRC will collect part of your Self Assessment bill through your PAYE tax code. HMRC published a consultation factsheet on this in June 2026. It does not change how much tax you pay, only when.
What does Budget 2026 mean for limited company directors?
For a one-person company the biggest change already happened on 6 April 2026, when dividend tax went up by 2 percentage points at the basic and higher rates. The dividend allowance is £500. Here is what that rise costs on a typical basic-rate dividend.
- Dividends taken in 2026/27, all within the basic-rate band
- £20,000
- Less the dividend allowance
- −£500
- Taxable dividends
- £19,500
- Tax at 8.75% (2025/26 rate)
- £1,706
- Tax at 10.75% (2026/27 rate)
- £2,096
Extra tax a year from the April 2026 rise£390
Our sums assume the dividends sit entirely in the basic-rate band (for example, alongside a £12,570 salary). At the higher rate, every £1,000 of dividends now costs £357.50 in tax rather than £337.50. We compare the full picture at six profit levels in sole trader vs limited company, and dividend tax rates for 2026/27 has the rate tables.
Corporation tax stays at 19% on profits up to £50,000 and 25% above £250,000, with marginal relief in between. Finance Bill 2025-26 set the same rates for the year starting 1 April 2027, and the Budget 2025 report restated the 2024 Corporate Tax Roadmap commitment to a main rate of 25%. Late filing penalties for company tax returns doubled for returns due on or after 1 April 2026: £200 if late, £400 if more than three months late.
Companies House: identity checks now, new accounts rules in 2028
Since 18 November 2025 every director and person with significant control (PSC, someone who owns or controls more than 25% of a company) must verify their identity with Companies House and get a personal code. That date started a 12-month transition, so the window for existing directors closes in November 2026. Existing directors give their code with the company’s next confirmation statement. Each person’s due date depends on the company’s confirmation statement date or, for a PSC who is not a director, their birth month.
On 9 June 2026 the government confirmed the accounts reforms will start in April 2028, a year later than first planned. All companies will have to file accounts through commercial software. Small and micro companies will have to file a profit and loss account, with an option not to publish it, and abridged accounts will go. These dates are set by Companies House and the Department for Business and Trade, not by the Budget, but we will note any related announcement on the day.
If you are deciding how to take money out of the company this year, see how to pay yourself from a limited company and the best director salary for 2026/27.
Is the VAT threshold changing in Budget 2026?
We do not know, and nor does anyone outside the Treasury. Here is what is on the record. The VAT registration threshold is £90,000 of taxable turnover in any rolling 12 months, and the deregistration threshold is £88,000. Both took effect on 1 April 2024. You must also register if you expect to go over £90,000 in the next 30 days alone.
We checked the Budget 2025 report and its OOTLAR, and neither contains a VAT threshold measure. We found no gov.uk statement that the threshold is frozen until a particular date, so “frozen” is not quite the right word. It is simply unchanged, and any Budget can change it. That is why VAT is a row in our Budget day table. For how the rolling test works, read our VAT threshold guide.
Online sellers: the marketplace VAT consultation
One VAT change is officially under consideration. In June 2026 HMRC published a consultation on extending online marketplace liability to UK-based sellers. Since 2021 marketplaces have accounted for VAT on many sales by overseas sellers. The proposal would make them account for VAT on sales they facilitate for UK businesses too. To protect sellers below the VAT threshold, the consultation offers two options: a minimum platform threshold, or a VAT rate relief for UK businesses under the registration threshold. Individuals selling their own second-hand goods would be out of scope.
The government has not said this will be decided at Budget 2026. A press report says it may be; see the speculation section below. If you sell through Amazon, eBay, Etsy or similar, our guide to tax when selling online and what platforms report to HMRC are the places to start.
What changes if I employ people?
Employer National Insurance has been 15% on pay above the secondary threshold of £5,000 a year since 6 April 2025. The secondary threshold is set at £5,000 until 5 April 2028 and then rises with inflation. The Employment Allowance lets eligible employers take up to £10,500 a year off their employer NI bill. A company whose only employee paid above the threshold is a director cannot claim it.
- Employee salary
- £30,000
- Less secondary threshold
- −£5,000
- Pay subject to employer NI
- £25,000
- Employer NI at 15%
- £3,750
- Employment Allowance (if eligible), up to
- −£10,500
Employer NI paid for one £30,000 employee, if eligible£0
On these 2026/27 rates the allowance covers employer NI for about two employees at £30,000 (2 × £3,750 = £7,500), but not three (£11,250). The National Living Wage for workers aged 21 and over is £12.71 an hour from 1 April 2026.
The Employment Rights Act 2025 is being brought in stage by stage. Acas gives these dates:
- 6 April 2026 (in force): statutory sick pay from the first day of sickness, with no lower earnings limit; paternity leave and unpaid parental leave from day one; holiday records kept for 6 years.
- 1 October 2026 (in force): employment tribunal claim time limit raised from 3 to 6 months.
- 30 October 2026: employers must take “all reasonable steps” to prevent sexual harassment, and become liable for harassment by third parties such as customers unless they have done so.
- By the end of 2026: employers must consult workers before creating or reviewing a tipping policy.
- 1 January 2027: unfair dismissal protection after 6 months’ employment instead of 2 years, and no cap on compensation.
Statutory sick pay for 2026/27 is £123.25 a week or 80% of average weekly earnings, whichever is lower. Budgets set NI rates and thresholds, not employment rights. So for payroll, the Budget day question is whether the 15% rate, the £5,000 threshold or the £10,500 allowance move.
What has the government said will be announced at Budget 2026?
Only a few items have been officially promised for this Budget. They are the only ones we are treating as certain to appear.
- The e-invoicing roadmap Budget 2025 confirmed that all VAT invoices between businesses, and between businesses and the public sector, must be electronic from April 2029. The OOTLAR says an “implementation roadmap and standards” will be “published at Budget 2026”. HMRC’s July 2026 roadmap annex says it will work with the Department for Business and Trade to publish a roadmap at Budget 2026 “that will set out the milestones to implementation in April 2029”. HMRC expects full guidance, technical specifications and legislation by the end of 2027/28. In June 2026 the government named Peppol (an international network that passes e-invoices between certified providers, called access points) as the core network for UK e-invoicing. Businesses that are not VAT-registered are not expected to be obliged to use it.
- Final fuel duty rates In May 2026 the government extended the 5p a litre fuel duty cut to 31 December 2026, citing high fuel prices caused by the Iran war. The default in law is 55.95p a litre for petrol and diesel from 1 January 2027 and 57.95p from 1 March 2027, up from 52.95p now. HMRC’s policy paper says “the government will confirm final rates at Budget 2026”. This matters if you run a van or drive for work.
- The usual annual measures Every Budget is accompanied by a Finance Bill and a list of rates for the coming tax year. The 2027/28 figures that are not already fixed will be in the OOTLAR annex.
- Diesel used by a van in a year (example)
- 2,000 litres
- Duty now: 52.95p a litre
- £1,059
- Duty from 1 March 2027 if the default stands: 57.95p
- £1,159
- Plus VAT at 20% on the extra £100 (if you are not VAT-registered)
- £20
Extra a year at the default rates£120
Our example assumes 2,000 litres a year and that pump prices pass the duty on in full. A VAT-registered business can usually reclaim VAT on business fuel, so its extra cost would be £100.
Three consultations from June 2026 are also open or recently closed and could come back with decisions at any time, but the government has not tied them to this Budget: Direct Debit becoming the required way to pay VAT and PAYE, software standards for tills (EPOS) to stop sales suppression, and the online marketplace VAT change above.
What are the papers saying about Budget 2026? (speculation, not fact)
The items in this section are reported by newspapers, not announced by the government. HM Treasury told the Guardian that “decisions on tax are a matter for the chancellor to set out at fiscal events”. Do not change prices, payroll or how you pay yourself because of them.
- Online marketplaces and VAT. The Guardian reported on 14 October 2026, citing the Times, that the Chancellor is expected to make marketplaces collect VAT on sales by sellers with turnover over £90,000, to help fund business rates cuts for high street shops.
- Business rates for small shops. The same report says the Prime Minister, Andy Burnham, said before his election as MP for Makerfield that he would raise the business rates threshold so that 140,000 small high street retailers would not pay. No such measure has been announced.
- Energy support and “breathing space”. On 15 October the Guardian quoted the Chancellor promising “a bit of breathing space” for consumers and businesses while keeping to the fiscal rules. The paper said he is expected to announce more energy support. He declined to comment on specific taxes.
We will not repeat other rumours here. On the day, every item on this page will be checked against the Budget documents themselves.
What will we check on Budget day?
This is the table we will update on 28 October. Each row has a fixed topic, today’s rule and the document where the answer will appear. “Pending” means no announcement yet. On the day each row will become “no change”, “changed” (with the new rule and start date) or “consultation”.
| Topic | Current rule | Where the answer will be | Status |
|---|---|---|---|
| Income tax thresholds | Personal allowance £12,570, higher rate from £50,270, additional rate from £125,140; frozen to April 2031 | Budget report, OOTLAR chapter 1 and Annex A | pending |
| National Insurance, self-employed | Class 4: 6% on £12,570–£50,270, 2% above; Class 2 treated as paid from £7,105 profit | OOTLAR (NICs measures) and Annex A | pending |
| National Insurance, employers | 15% above £5,000 a year; Employment Allowance £10,500 | OOTLAR and Annex A; HMRC employer rates page | pending |
| Dividend tax | 10.75% / 35.75% / 39.35%; £500 allowance | OOTLAR chapter 1 and Annex A | pending |
| Corporation tax | 19% to £50,000, 25% above £250,000, marginal relief between | OOTLAR (Corporation Tax charge and rates) | pending |
| VAT threshold | Register over £90,000 (rolling 12 months); deregister below £88,000 | Budget report and OOTLAR (VAT measures); HMRC policy paper if changed | pending |
| Online marketplace VAT liability | Consultation (June 2026) on UK sellers; no decision | OOTLAR; consultation response on gov.uk | pending |
| Making Tax Digital | Income Tax: over £30,000 from 6 April 2027, over £20,000 from 6 April 2028; no MTD for Corporation Tax | OOTLAR (MTD measures); HMRC MTD guidance | pending |
| E-invoicing | Mandatory for B2B and B2G VAT invoices from April 2029; roadmap promised at this Budget | HMRC/DBT e-invoicing roadmap and standards; OOTLAR | pending |
| Business rates (England) | Small business rate relief below £15,000 rateable value (nothing to pay at £12,000 or less); RHL multipliers 38.2p small / 43p standard in 2026/27 | Budget report; MHCLG business rates documents | pending |
| Capital allowances and R&D | Annual Investment Allowance £1m; 40% first-year allowance since 1 January 2026; main-rate writing-down allowance 14% from April 2026; merged R&D scheme and ERIS | OOTLAR (capital allowances, R&D) | pending |
| Fuel duty (vans and work vehicles) | 52.95p a litre to 31 December 2026; default 55.95p from 1 January 2027, 57.95p from 1 March 2027 | OOTLAR (Fuel Duty rates); HMRC policy paper | pending |
| Pensions and salary sacrifice (note only) | NI on salary-sacrificed pension contributions above £2,000 a year from 6 April 2029 | OOTLAR | pending |
Scotland sets its own income tax rates and bands on non-savings income. Business rates are devolved in Scotland, Wales and Northern Ireland, so the business rates row covers England only.
What should a small business do before 28 October?
Nothing on this page requires action because of the Budget itself. These are the things worth doing now because the dates are already fixed.
- Check your MTD year Add up your gross self-employment and property income on your 2025/26 return. Over £30,000 means MTD from 6 April 2027. Choose software and a bank feed in good time; our business bank accounts guide notes which accounts include MTD tools.
- Directors: verify your identity If you have not yet given Companies House your personal code, find your company’s confirmation statement date. The transition year ends in November 2026.
- Ltd owners: price the dividend rise Budget for the higher dividend tax in your January 2027 Self Assessment payment, using the example above. Our guide to payments on account explains how the January bill is built.
- Watch your rolling VAT turnover If you are close to £90,000 over any 12 months, check monthly. The threshold applies to a rolling 12 months, not the tax year.
- Do not act on rumours The Chancellor himself said in October that speculation before past Budgets led people to cash in pensions early or hold back investment when they did not need to. Wait for the documents.
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FAQ
When is the Budget 2026 statement?
Wednesday 28 October 2026. The Chancellor, John Healey, confirmed the date in a letter to the Treasury Select Committee that HM Treasury published on 31 July 2026. The Budget documents go up on gov.uk once he finishes speaking.
Will the VAT threshold change in Budget 2026?
There is no official announcement either way. The threshold has been £90,000 since 1 April 2024, and we found no gov.uk statement fixing it until a set date. We will update this page on 28 October with whatever the Budget documents say.
Is dividend tax going up in Budget 2026?
It already went up on 6 April 2026, to 10.75% at the basic rate and 35.75% at the higher rate, after Budget 2025. The additional rate stayed at 39.35% and the allowance is £500. Any further change would appear in the Budget 2026 OOTLAR, which we will check on the day.
Can Budget 2026 change the Making Tax Digital dates?
It could, but the current law is clear: gross self-employment and property income over £30,000 brings you into MTD from 6 April 2027, and over £20,000 from 6 April 2028. Plan on those dates unless the official documents change them.
What will the e-invoicing roadmap tell small businesses?
HMRC says it will “set out the milestones to implementation in April 2029”. The mandate covers VAT invoices between businesses and to the public sector, using the Peppol network. Whether there will be phasing by size, provider accreditation or penalties is not yet confirmed.
Are National Insurance rates for the self-employed changing?
Nothing has been announced for Budget 2026. For 2026/27, Class 4 is 6% on profits between £12,570 and £50,270 and 2% above, and those limits are frozen to April 2031. Class 2 is treated as paid if profits are £7,105 or more.
Do limited companies have to use Making Tax Digital for Corporation Tax?
No. There is no announced plan to make MTD compulsory for Corporation Tax. Companies use MTD only for VAT if they are VAT-registered. Budget 2025 announced real-time digital prompts in Corporation Tax filing software from April 2028.
Will fuel duty go up in January 2027?
The default in law is a rise from 52.95p to 55.95p a litre on 1 January 2027 and to 57.95p on 1 March 2027. HMRC says the government will confirm the final rates at Budget 2026, so this row will be updated on 28 October.
Is anything changing for employers on Budget day?
Employment rights dates are not set by the Budget: the next ones are 30 October 2026 for harassment duties and 1 January 2027 for the 6-month unfair dismissal qualifying period. On Budget day, the employer questions are the 15% NI rate, the £5,000 threshold and the £10,500 Employment Allowance.
Where can I read the official Budget documents?
On gov.uk, under HM Treasury, from the moment the statement ends. The key files for small businesses are the Budget report, the “Overview of tax legislation and rates” and the HMRC policy papers for each measure. We link each one from this page once it is published.
Changelog
- 20 October 2026 Pre-Budget version published. We checked the date of Budget 2026 (28 October 2026) against the Chancellor’s letter on gov.uk and listed the changes already in law or announced for 2026/27 to 2029, with sources. We added the Budget day checklist with every row marked “pending”. The next update is due on 28 October 2026, from the Budget documents.
This page explains published tax rules and dates. It is not tax, legal or financial advice. Speak to an accountant or a regulated adviser about your own position.
Sources
- HM Treasury: Chancellor letter to the Treasury Select Committee, Budget 2026 date (31 July 2026)
- GOV.UK: Chancellor of the Exchequer (role holder)
- HM Treasury/HMRC: Budget 2025 overview of tax legislation and rates (OOTLAR)
- HM Treasury: Budget 2025 report
- HMRC: Check if you’re eligible for Making Tax Digital for Income Tax
- GOV.UK: Tax on dividends (2026/27 rates)
- GOV.UK: Corporation Tax rates and reliefs
- GOV.UK: Self-employed National Insurance rates
- HMRC: Rates and thresholds for employers 2026 to 2027
- GOV.UK: Employment Allowance
- GOV.UK: When to register for VAT
- HMRC: VAT, increasing the registration and deregistration thresholds (from 1 April 2024)
- HMRC: Extending online marketplace liability factsheet (June 2026)
- HMRC: Timely payments in Income Tax Self Assessment factsheet (June 2026)
- HM Treasury/HMRC: Tax update 2026 summary (23 June 2026)
- HMRC: Transformation roadmap progress update 2026, annex (e-invoicing)
- HMRC: Amended Fuel Duty rates 2026 to 2027 (22 May 2026)
- Companies House: Identity verification (transition from 18 November 2025)
- Companies House: When you need to verify your identity
- Companies House: Changes to accounts filing from April 2028 (9 June 2026)
- MHCLG: Business rates multipliers for qualifying retail, hospitality or leisure
- GOV.UK: Small business rate relief
- GOV.UK: Annual investment allowance
- HMRC: Merged R&D scheme and enhanced R&D intensive support
- Acas: Employment Rights Act 2025 (updated 1 October 2026)
- DBT: Implementing the Employment Rights Bill, roadmap
- The Guardian: John Healey “targets tax crackdown on online marketplaces” in first budget (14 October 2026), press report
- The Guardian: John Healey vows to give “breathing space” in first budget (15 October 2026), press report
Checked on 20 October 2026 against gov.uk, HMRC, Companies House and Acas. This is the pre-Budget version; it will be updated on 28 October 2026 from the official Budget documents. Tax rules change; the official documents always prevail.