Autumn Budget 2026: Key Takeaways for UK Businesses

The 2026 Autumn Budget, announced on 28 October, introduced a number of changes that will affect UK employers and businesses over the coming months and years.

While there were no headline increases to Income Tax, National Insurance or VAT, changes to minimum wage rates, payroll, business rates and employee incentives will all have implications for business costs and workforce planning.

Here’s a summary of the key announcements and what employers should be aware of.

National Minimum Wage increases from April 2027

As every year, from 1 April 2027, the National Living Wage and National Minimum Wage will increase by 3.9%. The new rates will be as follows: 

• Age 21 and over (National Living Wage): £13.21 per hour (up from £12.71) 

• Age 18-20: £11.27 per hour (up from £10.85) 

• Age 16-17: £8.31 per hour (up from £8.00) 

• Apprentice rate: £8.31 per hour (up from £8.00) 

For employers, these changes mean reviewing payroll budgets and pay structures, particularly where increases at the lower end of the pay scale could create pressure on differentials between roles. Higher wage costs may also affect associated National Insurance and pension contributions.  

With increases to the National Minimum Wage, employers should pay close attention to employees whose earnings sit just above the minimum threshold and who contribute to their pension through Salary Exchange.  

What should employers do? 

Review pay structures ahead of April 2027 and consider the wider impact on payroll costs, particularly if you have employees across several pay grades.  

To ensure your pension and reward strategy remains compliant with The Pensions Regulator’s requirements, speak to your Employee Benefits Consultant at Omny Group for tailored guidance and support, or get in touch to start the conversation.

Tax changes and business costs

There were no headline increases to Income Tax, National Insurance or VAT. However, Income Tax rates on savings and property income will increase by an additional 2 percentage points from April 2027, taking the rates to 24% basic, 44% higher rate and 49% additional and trust rates.  

Frozen tax thresholds and existing employment costs will also remain important considerations for businesses planning their budgets and workforce costs.  

Payroll, benefits and expenses

Several announcements will affect how employers manage payroll, expenses and employee benefits.  

Payrolling benefits in kind

Mandatory payrolling of benefits in kind will be introduced in stages:  

• From 6 April 2027: company cars, vans, fuel and medical benefits.  

• From 6 April 2028: remaining benefits.  

Employers should start reviewing their payroll systems and processes to prepare for the changes, if they haven’t already made the change when it was voluntary back in April this year. 

Business mileage rates  

The 55p per mile rate for the first 10,000 business miles, introduced temporarily in April 2026, will become permanent. From 6 April 2027, the rate for mileage above 10,000 miles will increase from 25p to 35p per mile.  

Skilled Worker immigration costs  

From 28 October 2026, employer-paid Certificate of Sponsorship fees and Immigration Skills Charges under the Skilled Worker route will be exempt from Income Tax. However, reimbursements for employee visa application fees and the Immigration Health Surcharge will remain subject to Income Tax and National Insurance. Payments made before 28 October will retain their previous tax treatment.  

Pension salary sacrifice  

It was confirmed (as previously announced), that from April 2029, salary-sacrificed pension contributions above an annual £2,000 threshold will no longer be exempt from National Insurance. Employers may need to review their pension arrangements and consider the impact on both business costs and employees.  

Company car and van tax  

Company car tax rates will increase in 2030–31, including for zero-emission vehicles. Van and fuel benefit charges will also rise from April 2027. 

Business rates relief for high-street businesses

From April 2027, qualifying retail, hospitality and leisure properties in England will benefit from expanded Small Business Rate Relief.  

The rateable value threshold for 100% relief will increase from £12,000 to £18,000, with tapered relief available up to £21,000. Around 70,000 additional high-street businesses are expected to pay no business rates.  

Qualifying properties will also be protected against above-inflation increases to their business rates bills for two years.  

What should businesses do? 

If you operate in the retail, hospitality or leisure sectors, check whether your premises will qualify and factor any potential savings into your financial planning. 

Support for manufacturers’ energy costs

Eligible manufacturers are expected to receive up to 25% relief on electricity costs from April 2027. For businesses that qualify, this could help manage overheads and support future investment planning. 

The eligibility criteria and individual impact will be important to consider when assessing the benefit. 

Employment law and recruitment changes

The Government is planning reforms to non-compete clauses, with further details expected in early 2027. A wider consultation on restrictive practices is also planned. 

Changes relating to Skilled Worker immigration and apprenticeships may have further implications for recruitment and workforce planning, depending on eligibility and the final rules. 

Employers should keep an eye on further announcements as these measures develop.

Employee incentives and business ownership

The Budget also included changes intended to support employee share ownership and business growth. 

Company Share Option Plans (CSOP) 

From 6 April 2027: 

• The individual CSOP option limit will increase from £60,000 to £120,000. 

• The maximum exercise period will extend from 10 to 15 years. 

• EMI2 options will no longer count towards the EMI limit.  

These changes may give eligible businesses more flexibility when using share schemes to attract and retain employees. 

Founders’ Relief 

The proposed Founders’ Relief will provide a 10% Capital Gains Tax rate on qualifying gains, subject to a £10 million lifetime limit and the final eligibility rules. 

The Business Asset Disposal Relief lifetime limit will reduce to £500,000.

What should businesses do next?

Although some changes won’t take effect until 2027 or later, employers can start preparing now. Key areas to consider include:  

• Workforce costs: Review salary budgets, pay structures and the impact of minimum wage increases. 

• Payroll and benefits: Check whether your systems and processes are ready for mandatory payrolling and future tax changes. 

• Recruitment and retention: Consider how changes to immigration, apprenticeships and employee share schemes could affect your workforce plans. 

• Business overheads: Check eligibility for business rates and energy cost support. 

• Future planning: Keep track of employment law developments and changes due to take effect over the coming years.  

At Omny Group, we’re here to help

The Budget changes touch several areas of running a business, from employment costs and payroll to employee benefits, financial planning and employment law.

Omny Group brings all of these areas together and more, giving businesses access to practical support and expertise across HR, Law, Safety, Benefits and Personal Finance. Whether you need help understanding what a change means for your business or putting the right plans in place, our team can help you work through the next steps.  

If you could benefit from some support following the recent budget announcements, or wider people and business matters, get in touch with us today for an initial chat.