Who gets increased business rates relief?

From April 2027, eligible retail, hospitality and leisure businesses in England will qualify for full Small Business Rates Relief on properties with a rateable value of up to £18,000, up from £12,000. Tapered relief will be available for properties valued up to £21,000.

What changes affect tax relief claims?

From April 2027, companies will no longer have to submit a separate notification form to claim Research and Development tax relief, and HMRC plans to introduce a revised Additional Information Form later that year. From April 2028, the £2,500 threshold that currently requires employees to file a Self Assessment return for work-related expense relief will be removed, allowing larger qualifying claims through PAYE services with supporting evidence.

What are the main VAT changes?

From April 2027, the reverse charge on services bought from overseas will apply only when the UK recipient is VAT-registered. From October 2027, online marketplaces will have greater responsibility for collecting VAT on qualifying sales to UK businesses. Structured electronic VAT invoicing will become mandatory in relevant circumstances from April 2029, and employers will need to maintain HMRC Direct Debit arrangements for PAYE and VAT liabilities, though other payment methods will remain available.

Business tax changes: what employers need to know

Q: How are mileage allowances changing?

The tax-free rate for the first 10,000 business miles in an employee’s own car or van rose from 45p to 55p per mile in April 2026. From 6 April 2027, the rate for mileage above 10,000 miles will increase from 25p to 35p per mile. Equivalent changes apply to simplified mileage expenses for self-employed people.

CREATED BY ROGER EDDOWES

Published: 12/11/2026 @ 09:00AM

#AutumnBudget2026 #BusinessTaxChanges #UKBusinessRates #VATAdministration #SelfEmployedTax

The Autumn Budget 2026 business tax changes, announced by Chancellor John Healey on 28th October, include several measures affecting employers, small businesses and self-employed people. From mileage allowances and business rates to VAT administration, the announcements introduce changes that businesses should prepare for over the coming years ...

Business tax changes: employers should review new rules and payroll obligations to stay compliant"

Among the business tax changes are improvements to approved mileage allowances. The tax-free rate for the first 10,000 business miles travelled in an employee's own car or van increased from 45p to 55p per mile from April 2026. From 6 April 2027, the rate for mileage above 10,000 miles will also rise, from 25p to 35p per mile.

Equivalent changes apply to simplified mileage
expenses for self-employed people!

Eligible retail, hospitality and leisure businesses in England will benefit from increased Small Business Rates Relief thresholds from April 2027. Properties with a rateable value of up to £18,000 will qualify for full relief, compared with £12,000 previously. Tapered relief will extend to properties valued up to £21,000.

Changes are also coming to Research and Development tax relief. From April 2027, companies will no longer need to submit a separate claim notification form. HMRC also plans to introduce a revised Additional Information Form later in 2027.

Employees claiming tax relief on work-related expenses will see changes from April 2028. The current £2,500 threshold requiring a Self Assessment return will be removed, allowing larger qualifying claims through PAYE services with supporting evidence.

VAT rules are also being updated!

From April 2027, the VAT reverse charge on services purchased from overseas will apply only to VAT-registered UK businesses. From October 2027, online marketplaces will become responsible for collecting VAT on qualifying sales made by UK businesses through their platforms, excluding business-to-business transactions and certain other exemptions.

Looking further ahead, structured electronic VAT invoicing will become mandatory in relevant circumstances from April 2029. Employers will also need to maintain Direct Debit arrangements with HMRC for PAYE and VAT liabilities, although other payment options will remain available.

Other announcements include extended fuel duty reductions, increased Company Share Option Plan limits, and measures to address electronic till fraud.

The Autumn Budget 2026 business tax changes will take effect at different times, allowing businesses to review their accounting systems, payroll procedures and tax arrangements.

Until next time ...

ROGER EDDOWES
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#AutumnBudget2026 #BusinessTaxChanges #UKBusinessRates #VATAdministration #SelfEmployedTax

About Roger Eddowes ...

Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.

Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.

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Business tax changes: what employers need to know

Equivalent changes apply to simplified mileageexpenses for self-employed people!

Changes are also coming to Research and Development tax relief. From April 2027, companies will no longer need to submit a separate claim notification form. HMRC also plans to introduce a revised Additional Information Form later in 2027.

VAT rules are also being updated!

Other announcements include extended fuel duty reductions, increased Company Share Option Plan limits, and measures to address electronic till fraud.

Equivalent changes apply to simplified mileage
expenses for self-employed people!