Headline rates hold steady. But frozen thresholds and a staggered timetable of changes leave UK businesses with important decisions to make well before the deadlines arrive.
The Budget has been described as offering businesses “breathing space”. We see it differently: it kicks the can down the road. The headline rates of Income Tax, National Insurance and VAT are unchanged, and Corporation Tax’s main rate remains 25% for the year beginning 1 April 2028, with the small profits rate at 19%.
But unchanged headline rates do not mean unchanged costs. Personal allowances and thresholds remain frozen at 2022/23 levels until 2030/31, while a series of changes arrive across 2027, 2028 and 2029. For a business turning over £2m or more, those dates can affect decisions about investment, ownership, reward, payroll and cash.
The risk is not necessarily an immediate shock. It is waiting until each deadline becomes a headline and discovering there is too little time to plan around it.
These are the dates boards and business owners should have on their radar. The impact will vary by business, but the lead time for decisions is already running.
| Date | What changes | Why it matters to a larger business |
|---|---|---|
| 1 January 2027 | The main-rate first-year allowance for qualifying capital expenditure rises from 40% to 50%. | This may affect the tax profile of planned investment. Its value needs to be considered alongside project timing and cash requirements. |
| 1 April 2027 | The main-rate writing-down allowance falls from 14% to 12% for companies. The National Living Wage rises to £13.21 an hour for workers aged 21 and over; rates rise to £11.27 for ages 18–20 and £8.31 for ages 16–17 and apprentices. The R&D Claim Notification Form is removed. | Capital allowance assumptions, payroll budgets and R&D claim processes may all need attention. The special-rate writing-down allowance remains 6%; full expensing and the £1m Annual Investment Allowance remain. |
| 6 April 2027 | The lifetime limit for Business Asset Disposal Relief (BADR) halves from £1m to £500,000, while the qualifying rate remains 18%. Founders’ Relief is due to begin, offering 10% CGT on qualifying gains up to a £10m lifetime limit. Savings and property income tax rates rise by a further two percentage points, to 24%, 44% and 49%. EMI changes, including the CSOP rebrand to EMI2, also take effect. | Owners considering an exit, businesses planning employee share incentives and individuals with savings or property income should note the date. Founders’ Relief details remain subject to consultation. |
| 31 March 2027 / 5 April 2027 | The 100% first-year allowances for zero-emission cars and electric vehicle chargepoints expire for companies and unincorporated businesses respectively. New zero-emission cars will then receive a 12% writing-down allowance. | Fleet renewal and charging infrastructure decisions may be affected by the change in timing and tax treatment. |
| 1 July 2027 | The temporary 5p-per-litre fuel duty cut ends. | Businesses with significant vehicle or distribution costs may need to reflect the change in cost assumptions. |
| October 2027 | Online marketplaces become responsible for collecting VAT on qualifying sales by UK businesses. | Sellers should understand how marketplace sales and VAT collection could affect reporting, cash timing and reconciliations. The rules cover VAT-registered UK sellers and other UK businesses making more than £90,000 of sales through a marketplace. |
| April 2028 | The company distributions framework is due to change. Remaining mandatory payrolling of benefits in kind begins, excluding beneficial loans and accommodation. | Proposed changes to the tax treatment of capital reductions, demergers and share buybacks could affect how transactions are assessed. Payroll teams will also need to account for a wider set of benefits. |
| October 2028 | Customs duty relief for low-value imports of £135 or less is removed. | Businesses that import goods in this range should consider the potential effect on landed costs and purchasing assumptions. |
| April 2029 | VAT e-invoicing becomes mandatory. VAT and PAYE businesses must set up direct debit instructions to collect unpaid balances. Income Tax Self Assessment taxpayers who already make payments on account move towards smaller, more regular in-year payments. Salary-sacrifice amounts above £2,000 attract employer and employee NICs as if paid as cash salary. | This is a significant systems and cash-flow milestone. The Self Assessment payment change applies to relevant taxpayers, not companies’ Corporation Tax payments. |
| July 2029 | HMRC can recover lower-value tax debts directly from bank accounts where a taxpayer can pay but repeatedly fails to do so. The Budget also provides for 670 additional compliance officers. | Strong payment processes and timely responses to HMRC matter. Direct recovery is targeted at cases of repeated non-engagement, not routine collection from every business. |
One important distinction: Making Tax Digital for Income Tax is extended from April 2027 to sole traders and landlords with qualifying income over £30,000; the threshold is due to fall to £20,000 from April 2028. This is not a company reporting regime, but may be relevant to owners with personal self-employment or property income.
The dates and measures above are set out in the HM Treasury Budget 2026 report and the HMRC overview of tax legislation and rates.
The most persistent pressure may be the least visible. Personal allowances and thresholds remain frozen at 2022/23 levels until 2030/31. As salaries rise, more income can fall into higher tax bands, even though the headline rates have not changed.
The Budget summary gives a clear illustration: a salary of £50,270 results in £7,540 of Income Tax in 2026/27. A 10% increase, to £55,297, raises the bill to £9,551, with the whole increase taxed at 40%.
There is also a 60% effective marginal rate between £100,000 and £125,140, as the personal allowance is withdrawn. For business owners and boards, these thresholds matter when considering pay, incentives and the overall cost of reward. They also reinforce why workforce and remuneration costs deserve a place in forward-looking financial forecasts.
This is not a DIY checklist. The right response depends on your ownership structure, investment plans, workforce and cash position. But several areas deserve attention well ahead of the effective dates:
A CFO-level review brings these strands together: what the dates mean for your business, which assumptions need to change, and what decisions deserve board attention first. That is the kind of forward planning we provide as part of an ongoing finance function.
Titus Accounts provides outsourced CFO and controller services for medium and large UK businesses. We work with owners, CEOs, boards and finance leaders to provide ongoing financial leadership, reliable reporting and a disciplined monthly and annual close. We also provide due diligence support for business acquisitions.
We are not a stopgap while you build an in-house team. We are the outsourced finance function, working with you as your business grows and its financial decisions become more complex. Find out more about our services and financial planning support.
If your business has important investment, ownership or cash-flow decisions ahead, we can help you assess the timetable and its implications. Book a call with Titus Accounts.
Disclaimer: This article provides general information based on the Budget 2026 report published by HM Treasury on 28 October 2026. Many measures remain subject to consultation and legislation, so details may change. It is not advice for your specific circumstances.
Headline rates hold steady. But frozen thresholds and a staggered timetable of changes leave UK businesses with important decisions to make well...
October 29, 2026