The Chancellor’s Budget includes changes affecting savings, property income, business disposals, payroll, pensions and the way tax is reported and paid. Some measures are new, while others confirm plans announced previously. Many will not take effect immediately, giving taxpayers time to consider their options.

This update highlights developments likely to be of interest to individuals, landlords, employers and smaller businesses. Dates and details are based on the Government’s published Overview of Tax Legislation and Rates (OOTLAR). Proposed measures remain subject to legislation or, where stated, consultation.

Personal tax and household finances

Income Tax rates and allowances for 2027-28

The Budget makes no general change to the main Income Tax rates, thresholds or Personal Allowance for 2027-28. The standard Personal Allowance remains £12,570 and the higher-rate threshold remains £50,270. For England, Wales and Northern Ireland, the main rates on employment, pension and trading income remain 20%, 40% and 45%. Scotland sets its own rates and bands for non-savings, non-dividend income and Wales has devolved rate-setting powers. The changes to savings and property income described below are exceptions, and previously announced dividend tax changes also remain relevant. Freezing thresholds can mean that an increase in income leads to a higher tax bill, even when headline rates stay the same.

Savings interest will face higher tax rates

From 6 April 2027, the rates applying to taxable savings income across the UK will be 24%, 44% and 49%. These rates add two percentage points to the 22%, 42% and 47% rates previously announced. The Personal Savings Allowance and tax-free ISA treatment remain relevant, so not all interest will necessarily be taxed. Savers with substantial balances outside ISAs may wish to review their expected liabilities.

Landlords will pay more tax on rental profits

From 6 April 2027, the rates applying to taxable property income will rise to 24%, 44% and 49% in England, Wales and Northern Ireland. This follows the rates of 22%, 42% and 47% announced in the previous Budget, with a further two percentage points added in Budget 2026. Scotland and Wales have devolved powers to set property income rates, so future differences may arise. Landlords should revisit forecasts of their after-tax rental income.

Trading allowance increases to £3,000

From 6 April 2027, the trading allowance will increase from £1,000 to £3,000, and the Self-Assessment trading income reporting threshold will also rise. This may simplify matters for

people with modest trading or miscellaneous income. The allowance is an alternative to deducting actual expenses, not an extra deduction on top of them. Other reasons for filing a tax return may still apply.

Help for pensioners with modest incomes

A Pension Tax Allowance, previously announced in Budget 2025, will operate for three tax years from April 2027. It is designed to prevent certain pensioners whose total income does not exceed the full new State Pension from having to pay small Income Tax bills through Simple Assessment. The relief is gradually withdrawn as income increases.

A new ISA for first-time buyers

From April 2029, a new First Time Buyer ISA is due to replace the Lifetime ISA for new savers. It will permit contributions of up to £4,000 a year and provide a Government bonus of 25% calculated on the final account balance, capped at £20,000. The bonus will be paid when funds are withdrawn towards a qualifying first home costing no more than £450,000. Existing Lifetime ISA holders can continue using their accounts under existing rules. The new ISA will have no upper age restriction.

Lifetime ISA withdrawal charge changes

From 29 October 2026, the withdrawal charge for using a Lifetime ISA to purchase a property above the permitted price cap will fall from 25% to 20%. The 25% charge remains for other unauthorised withdrawals. The Government also intends to retain the £20,000 cash ISA limit for adults from April 2027, which had been expected to fall to £12,000.

Household energy bills and the cost of living

£100 Household Energy Payment

From January 2027, a £100 Household Energy Payment will be delivered to qualifying households in Council Tax bands A to D in England. The Government expects the £2.6 billion scheme to reach up to twenty million households. Payments will be made directly to bank accounts through arrangements involving local authorities and the Council Tax system. Devolved governments will receive funding to determine comparable support in their nations.

Temporary reduction in electricity VAT extended

The temporary zero rate of VAT on qualifying domestic electricity, introduced on 1 October 2026, has been extended until 30 June 2027. The Government estimates that the extension will reduce the annual Ofgem price cap equivalent by around £50 in April 2027. Actual savings will vary with usage and tariff. Separate funding is intended to provide comparable support in Northern Ireland.

Changes proposed for gas standing charges

The Government has asked Ofgem to abolish domestic gas standing charges, aiming for implementation by the end of 2027 or as soon as possible afterwards. Suppliers would recover the relevant costs through gas unit rates instead. The change would not necessarily reduce total bills for every household, particularly those using more gas. Reform of electricity standing charges is also under consideration.

Help with home energy improvements

The Government has launched a Warm Homes Loan Scheme to support household investment in heat pumps and other clean technologies. Details of eligibility, loan costs and individual savings should be checked before committing to work. The Budget also confirms continued funding for the Boiler Upgrade Scheme, although some capital grant funding within the wider Warm Homes Plan has been reprioritised.

Fuel Duty relief extended

The temporary 5p-per-litre Fuel Duty reduction continues until 30 June 2027. On 1 July 2027, duty is scheduled to return to its pre-March 2022 level and increase in line with RPI inflation. This represents a potentially significant one-step increase at the pump, rather than simply a deferred inflation adjustment. Motorists and businesses with substantial fuel expenditure should allow for the change in budgets.

Higher National Living Wage

From 1 April 2027, the National Living Wage for workers aged twenty-one and over will rise by 3.9% to £13.21 an hour. This will increase gross pay for eligible employees, while employers will need to budget for the additional payroll costs.

Support with food and everyday purchases

The Budget report confirms tariff suspensions affecting a range of food products, kerosene used for heating oil and fertiliser, with different start and end dates. These changes may reduce costs for importers and, where savings are passed on, consumers. Retail prices will also depend on supply chains, margins and other market conditions.

Help for first-time buyers and families

The Your First Home equity loan scheme is planned to open for applications from February 2027, with first loans from April 2027. It will support qualifying first-time buyers, subject to income, property price and deposit limits. A separate Parental Allowance for self-employed, eligible fathers, partners and adopters in Great Britain is planned from April 2029. Both schemes will have eligibility rules, so they should not be treated as universal entitlements.

Council Tax payment arrangements

The Government has outlined reforms intended to make Council Tax administration more manageable, including greater flexibility over payment arrangements. As the timing and detailed application of individual changes depend on implementation, households should continue to follow their council’s current bills and payment instructions.

Cap on bus fares extended to £2

The Budget report confirms that single bus fares in England outside London will be capped at £2 for one year from 1 January 2027. The cap is part of the Government’s wider transport support package, rather than a completely new policy first devised in this Budget. It may assist regular bus users, although not every service is covered.

Extra support for households struggling with energy bills

Alongside the £100 Household Energy Payment, the Budget provides £100 million for local authorities in England to support households particularly affected by energy costs, including

some living in higher Council Tax bands. A separate energy debt strategy includes improved repayment support and a targeted debt relief scheme for eligible households. Eligibility and delivery arrangements will need to be checked locally.

Business owners and company directors

Business rates relief for high-street firms

From April 2027, qualifying retail, hospitality and leisure properties in England will benefit from revised business rates support. The thresholds for 100% Small Business Rate Relief in these sectors rise from a rateable value of £12,000 to £18,000, with tapered relief up to £21,000 increased from £15,000. Additional relief is planned for pubs, social clubs and live music venues. Eligibility depends on the property and local rating circumstances.

Selling a business: review the tax position

From 6 April 2027, the lifetime limit for Business Asset Disposal Relief will fall from £1 million to £500,000. This may increase Capital Gains Tax for qualifying owners selling a business or shares. Anyone considering a disposal should take advice well before agreeing terms, particularly where contracts or reorganisations are involved.

New 10% relief for qualifying business founders

From 6 April 2027, the Government plans a new Founders’ Relief giving qualifying founders and significant early investors in high-growth, innovative UK companies a 10% Capital Gains Tax rate on up to £10 million of lifetime qualifying gains. It is not a general replacement for Business Asset Disposal Relief (BADR). The proposed rules link the available lifetime limit to claims under BADR and Investors’ Relief, so earlier or concurrent claims may reduce the Founders’ Relief available. The detailed design remains subject to a technical consultation closing on 30 November 2026. Advice should be taken before any planned disposal.

Changes to tax relief on equipment

The existing 40% main-rate first-year allowance is to increase to 50% for qualifying expenditure from 1 January 2027. The main-rate writing-down allowance will reduce to 12% from 1 April 2027 for Corporation Tax and 6 April 2027 for Income Tax. These changes affect the timing of relief, but the Annual Investment Allowance and full expensing may still be available in appropriate cases. Businesses considering substantial equipment purchases should review which relief applies.

Corporation Tax rates remain unchanged

The Government has confirmed a 25% main Corporation Tax rate and 19% small profits rate for the fiscal year beginning April 2028. The amount actually paid by a company can depend on its profits and associated company rules.

Banking surcharge increase

The Corporation Tax surcharge on banking companies is increasing from 3% to 6%. The change will apply from 1 January 2027 to 31 March 2028.

Employee share schemes become more flexible

From April 2027, the individual Company Share Option Plan limit will rise to £120,000, with changes to exercise periods and Enterprise Management Incentives. These measures may help growing businesses recruit and retain employees. Separate notification of new EMI option grants will also be replaced by reporting through annual returns for grants from 6 April 2027.

Employers and payroll

More company benefits will be taxed through payroll

From 6 April 2027, employers will have to payroll company cars, vans, fuel and medical benefits. Most other taxable benefits follow from April 2028, except employment-related loans and living accommodation. Employers should discuss software, payroll processes and employee communications with their payroll provider.

Company car costs continue to change

Company car benefit percentages are set to increase further for 2030-31, including a one percentage point increase for zero-emission vehicles. Employers planning fleet changes should consider the full running and tax costs rather than purchase price alone.

Income Tax exemption for overseas worker sponsorship fees

Employer payments of specified certificate of sponsorship fees and immigration skills charges under the Skilled Worker route will be exempt from employment Income Tax for payments made on or after 28 October 2026.

Pensions, inheritance and property

Unused pension funds and Inheritance Tax

Most unused pension funds and pension death benefits will be included in Inheritance Tax calculations for deaths on or after 6 April 2027. The main change was legislated in Finance Act 2026, following an earlier announcement. Budget 2026 includes further administrative measures to help personal representatives arrange for pension scheme administrators to pay tax. Individuals reviewing their estate planning should consider the interaction with existing exemptions and allowances.

Two-year rule for pension death benefits removed

For payments made on or after 28 October 2026, pension and lump sum death benefits that would otherwise qualify for tax-free treatment will no longer become taxable solely because they are paid more than two years after the scheme administrator knew, or could have known, of the death. Other conditions governing the tax treatment of pension death benefits continue to apply.

An extra charge for high-value homes

A High Value Council Tax Surcharge is planned from April 2028 for residential properties worth £2 million or more. This implements a previously announced measure and will be particularly relevant to owners of high-value homes.

VAT, tax returns and business administration

Electronic VAT invoicing is on the horizon

The Government intends to introduce mandatory electronic VAT invoicing from April 2029. Regulations will prescribe the electronic format. This goes further than sending a PDF invoice by email, and businesses should watch for software guidance and detailed implementation rules.

VAT on services bought from overseas

From April 2027, the VAT reverse charge on business-to-business services supplied from overseas will be restricted to VAT-registered UK recipients. Overseas suppliers will instead have to charge UK VAT where the receiving UK business is not VAT registered. This could increase costs for some small businesses.

Making Tax Digital: an important concession

The next group of sole traders and landlords is due to join Making Tax Digital for Income Tax from April 2027. The Government says it will not apply late submission penalty points to quarterly updates for the 2027-28 tax year for taxpayers required to join that April. Quarterly updates will still be required before a tax return can be submitted.

Tax payments could become more frequent

From April 2029, the Government plans more regular in-year Income Tax payments for Self-Assessment taxpayers who currently make payments on account. The detailed arrangements are still being developed. This is a forward-planning issue rather than an immediate change to January 2027 payments.

Direct Debits proposed for VAT and PAYE

From April 2029, the Government plans to require Direct Debit instructions for VAT and PAYE return liabilities, subject to exceptions. Businesses would still be able to pay by another method before a specified cut-off, with Direct Debit used for unpaid balances. Detailed rules will follow.

Tax return errors and HMRC compliance

From 1 April 2028, new rules will require taxpayers to correct certain inaccuracies and will give HMRC powers to issue Customer Correction Notices. Businesses and individuals should maintain reliable records and tell their accountant promptly if they discover an error in information already supplied to HMRC. The detailed legal conditions will determine when the new rules apply.

Online marketplaces and retail systems

From October 2027, online marketplaces will become responsible for VAT on certain sales by UK VAT-registered sellers and by other UK sellers whose annual sales exceed £90,000 on an individual platform. The precise scope of qualifying transactions matters, and the measure does not mean that every casual private sale will attract VAT. Businesses selling through platforms should review the effect on their invoicing and reporting.

Motoring and other business costs

Mileage allowance for business travel

The tax-free and tax-deductible car and van mileage rate for the first 10,000 qualifying business miles increased to 55p from 6 April 2026, following an announcement on 21 May 2026. This increase has now been made permanent. Separately, the rate for qualifying mileage above 10,000 miles will rise from 25p to 35p from 6 April 2027, announced on 27 October 2026. Employers and self-employed people using simplified mileage calculations should update their records and policies as appropriate.

Electric vehicle mileage charges

From April 2028, a mileage-based charge is planned for electric and plug-in hybrid cars, initially 3p per mile for fully electric and hydrogen fuel-cell cars and 1.5p per mile for plug-in hybrids. Drivers and businesses should include this in longer-term motoring cost forecasts.

Changes for particular sectors

The Budget also includes measures affecting alcohol, soft drinks, packaging, landfill, imports and certain private hire operators. These are not universal business tax changes, but affected firms should review the relevant sector-specific rules.

What should you do now?

� If you are considering selling a business, review the timing and potential Capital Gains Tax cost before entering into a binding agreement.

� If you are a landlord or have substantial savings outside ISAs, review your forecast income and tax liabilities for 2027-28.

� If you employ staff, ask your payroll provider about compulsory payrolling of benefits from April 2027.

� If you are a sole trader or landlord approaching Making Tax Digital, check your start date and software arrangements.

� If you are planning substantial investment, an electric vehicle purchase or changes to pension and estate arrangements, take advice before committing.

We can help identify which announcements are relevant to your circumstances and whether action is needed now or at a later date.

Could businesses benefit from greater software choice?

The Competition and Markets Authority has announced a new investigation into competition within the UK business software market, raising questions about whether organisations have sufficient freedom to select, combine and change the software they use.

On 16 October 2026, the regulator proposed designating Microsoft as having strategic market status within its business software ecosystem, a step that could eventually allow the authority to introduce targeted measures intended to improve competition. However, the proposal remains subject to consultation, and no new restrictions or obligations have yet been imposed as a result of this announcement.

The investigation is particularly relevant to smaller businesses because software has become central to everyday administration, accounting, communications and customer management. Many organisations depend on familiar applications for email, document preparation, spreadsheets and online meetings, while increasingly using additional services for accounting, payroll, customer records and artificial intelligence.

Why changing software can be difficult

Although businesses may have a wide selection of software products available, moving between providers is not always straightforward. Information may need to be transferred, employees retrained and existing systems reconfigured, while applications that work together within one supplier’s ecosystem may not integrate as easily with competing products.

The regulator is examining whether these difficulties restrict customer choice, particularly where software is sold in packages or where integration arrangements make alternative products less attractive.

For smaller businesses, the practical issue is whether they are obtaining good value from their existing software arrangements or simply continuing with familiar products because changing would be inconvenient.

Review your existing arrangements

A periodic software review can help establish whether the business is paying for services it no longer needs, whether employees are making full use of available features and whether alternative products could provide better value.

Businesses should also consider the consequences of becoming heavily dependent on a single supplier, particularly where essential records, communications and administrative processes rely on interconnected applications.

However, changing software solely to reduce subscription costs may prove counterproductive if the transition creates disruption or additional training requirements. Any decision should therefore consider the total cost of ownership, including implementation, support, security and staff time.

The Competition and Markets Authority’s investigation may eventually lead to greater choice, but businesses do not need to wait for regulatory changes before reviewing their own arrangements.

A sensible starting point is to list the software subscriptions currently being paid, identify who uses each product and assess whether the business is obtaining sufficient value from its investment.

Concern about energy costs among UK businesses has reached its highest recorded level since the Office for National Statistics began asking its current survey question in March 2026. According to figures published on 8 October, 72% of businesses expressed some degree of concern about energy prices, with the proportion rising to 91% among businesses operating in accommodation and food services.

The figures do not necessarily mean that every business has experienced an increase in its energy bills, but they illustrate the continuing uncertainty facing business owners who must manage operating costs while remaining competitive. For businesses where heating, refrigeration, manufacturing equipment or other energy-intensive activities represent a substantial proportion of expenditure, even relatively modest price increases can have a significant effect on profitability.

Start by understanding consumption

Although businesses cannot control wholesale energy prices, they can review how efficiently they use electricity and gas. A useful starting point is to examine consumption over the preceding 12 months, comparing both the quantities used and the amounts charged. This distinction matters because an increase in the total bill may reflect higher consumption, a change in the unit rate or additional standing charges.

Businesses should also establish when their current energy contracts expire and whether alternative arrangements might provide greater certainty. A fixed-price agreement may offer protection against future increases, although it can also prevent the business benefiting if market prices fall. The most suitable arrangement will depend on consumption patterns, financial circumstances and the degree of uncertainty the business is prepared to accept.

Consider the wider financial implications

Energy costs should also be considered when reviewing selling prices and profitability, particularly where contracts with customers have been agreed for extended periods. A business operating on relatively narrow margins may find that an increase in overheads substantially reduces its profits unless it can improve efficiency or recover some of the additional cost through pricing.

Cashflow forecasts provide another opportunity to assess the potential consequences, allowing businesses to consider alternative cost assumptions and identify periods when additional working capital might be required.

There may also be opportunities to reduce consumption through improved insulation, more efficient equipment or changes to operating procedures, although any investment should be assessed against its likely financial return.

Rather than waiting for the next energy bill to arrive, businesses would be well advised to review their current arrangements and establish how sensitive their profitability is to further changes in energy costs. Their accountant can assist by incorporating alternative cost assumptions into forecasts and identifying where improvements would have the greatest financial benefit.

Cyber security is becoming an increasingly important concern for businesses of every size, particularly as criminals develop more convincing methods of impersonating suppliers, customers and senior employees. The Government’s announcement on 12 October 2026 of further measures to strengthen Britain’s defences against emerging artificial intelligence risks highlights the growing sophistication of cyber threats, although smaller businesses should remember that many successful attacks still rely on relatively straightforward deception rather than advanced technology.

The latest Government Cyber Security Breaches Survey found that 43% of businesses had identified a cyber security breach or attack during the preceding 12 months, with phishing remaining the most commonly identified form of attack. While larger organisations often have specialist IT departments and established security procedures, smaller businesses may depend on one or two employees who handle payments, administration and customer communications alongside numerous other responsibilities, creating opportunities for criminals to exploit moments of distraction or uncertainty.

Consider a business that receives an email apparently from a regular supplier explaining that its bank account has changed. The message refers to an outstanding invoice, quotes the correct amount and appears to come from a familiar email address, so the employee responsible for payments updates the supplier’s details without making further enquiries. Unfortunately, the email was fraudulent, and the payment is transferred to a criminal’s account, leaving the business facing a potentially substantial financial loss.

Although increasingly sophisticated technology can make fraudulent communications more convincing, several straightforward precautions can significantly reduce the risks. Requests to change supplier bank details should always be independently verified using contact information already held by the business, while access to email, banking and accounting systems should be protected by multi-factor authentication wherever available. Employees should also understand how to recognise suspicious requests and know whom to contact when something appears unusual, particularly where a message creates artificial urgency or pressure to make an immediate payment.

Businesses should also consider how they would respond if a serious cyber incident occurred, because the consequences may extend beyond the immediate financial loss to include operational disruption, damaged customer relationships and possible data protection obligations. Regular backups, software updates, appropriate access controls and a documented response procedure can all contribute towards reducing those risks.

Cyber security should therefore be regarded as a management responsibility rather than simply an IT issue, with particular attention given to payment authorisation procedures, staff awareness and business continuity arrangements. A periodic review of these controls, supported where necessary by specialist advice, may identify relatively inexpensive improvements that could prevent a costly and disruptive incident.

Small businesses considering taking on an apprentice have a new financial incentive to investigate following the introduction, from 1 October 2026, of a £2,000 hiring payment for eligible employers in England that do not pay the apprenticeship levy and recruit an apprentice aged between 16 and 24. The incentive forms part of the Government’s wider programme to encourage businesses to provide employment and training opportunities for younger people, although employers should check the detailed eligibility requirements before making recruitment decisions.

To qualify, the apprentice must start their apprenticeship on or after 1 October 2026 and must have joined the employer within the preceding 90 days, which means that businesses cannot necessarily obtain the payment simply by transferring an established employee onto an apprenticeship programme. Employers should also establish how the incentive will be paid, whether other financial support is available and what administrative requirements must be satisfied.

Although the immediate attraction is the financial contribution towards recruitment costs, apprenticeships can offer wider benefits, particularly for smaller businesses that struggle to recruit employees with precisely the skills they require. By providing structured training alongside practical experience, an employer can develop someone who understands its particular systems, customers and working practices, while the apprentice gains recognised qualifications and valuable workplace experience. An engineering business, for example, might recruit someone who can gradually develop specialist knowledge of its equipment, while an accountancy practice could use an apprenticeship to introduce a new employee to bookkeeping, payroll and accounting services.

However, the £2,000 payment should not be regarded as covering the full cost of employing an apprentice, because wages, supervision, training arrangements and other employment costs must still be considered. Apprentices must receive the appropriate minimum wage and sufficient time for their required training, while the business needs to ensure that experienced employees have the capacity to provide guidance and support.

Before making a decision, employers should consider their longer-term staffing requirements and whether an apprenticeship would provide a suitable route towards meeting them. Someone recruited today may initially require considerable supervision but could develop into a valuable employee with skills tailored to the business and an understanding of its culture.

For employers already considering recruitment, the new incentive provides an additional reason to investigate apprenticeships, although the decision should ultimately rest on whether the arrangement makes commercial sense. Discussing the options with an apprenticeship training provider and reviewing the full financial commitment with your accountant would be a sensible starting point.

When businesses think about recruitment, they can easily concentrate on attracting younger workers. The latest employment figures suggest there may be another group worth considering.

Official PAYE statistics for August 2026 show that the number of payrolled employees aged 65 and over increased by 62,000 compared with August 2025. Over the same period, the number aged under 25 fell by 15,000.

That does not mean older workers are appropriate for every vacancy. It does suggest that the traditional assumption that people simply stop working when they reach their mid-sixties is becoming less reliable.

For smaller businesses, this could create opportunities.

An experienced employee may bring technical knowledge, customer-handling skills or management experience that would take years to develop internally.

Some people approaching or passing State Pension age may also want something different from their previous full-time career. They may prefer fewer days, shorter hours, project work or a role with less responsibility.

That can sometimes fit particularly well with the needs of a smaller business.

Consider, for example, a business that needs an experienced finance manager but cannot justify a full-time appointment. Someone with decades of experience who wants to work two days a week could potentially fill that gap.

The starting point should still be the job rather than the age of the applicant.

What skills does the business actually need? Does the role have to be full-time? Could two people share it? Is experience more valuable than qualifications in this particular position?

Flexible working can widen the pool of potential applicants at both ends of the age range.

There is another benefit. Mixing employees at different stages of their careers can create opportunities for knowledge transfer. An experienced worker may help develop younger colleagues, while newer recruits can bring different technical skills and perspectives.

Recruitment problems are often approached by asking, “Where can we find someone like the person who left?”

A better question may be, “What skills do we actually need, and who could provide them?”

The answer may be someone you had not previously considered.

Another significant change to payroll is now only six months away.

From 6 April 2027, employers will have to report and account for tax on several common benefits in kind through payroll in real time.

The first phase covers company cars, car fuel, vans, van fuel and employer-provided medical benefits.

At present, many employers deal with benefits after the tax year has ended using forms P11D. The new system brings the tax consequences into the payroll process throughout the year.

That makes preparation important.

Employers should start by identifying exactly which benefits they provide and to whom. Company vehicles may be obvious, but private medical insurance can involve larger groups of employees and changes during the year.

The next question is whether your existing payroll software will be ready.

From April 2027, the relevant benefit information will be included within the Full Payment Submission, or FPS, which employers already use to report salary and employee details to HMRC. Payroll processes will therefore need accurate information about benefits as they arise rather than waiting for an annual P11D exercise.

This may require better communication between whoever arranges benefits and whoever operates payroll. Suppose an employee changes company car halfway through a month or joins the company medical scheme. How quickly does the payroll team find out?

That seemingly simple question could expose a weakness in the current process.

The change is being phased. Most other benefits are expected to move into mandatory payrolling from April 2028, while employment-related loans and accommodation have separate arrangements.

There is no need to wait until next April.

Make a list of the benefits your business currently provides, establish which employees receive them and check that your payroll provider or software will support the new reporting requirements.

Six months is plenty of time to prepare.

It becomes considerably less comfortable if the first review takes place when the April payroll is already being processed.

Most business plans assume that things will broadly go according to plan. Unfortunately, customers, suppliers and the economy do not always cooperate. One useful exercise is therefore to ask what would happen if sales unexpectedly fell by 10%.

The answer may be reassuring. Alternatively, it may reveal that the business has far less room for manoeuvre than the owners realised. Start with your current turnover and reduce it by 10%. Then consider what happens to costs.

Some costs will fall automatically as sales decline. Materials, commissions and delivery charges are obvious examples. Others, such as rent, insurance, software subscriptions and many employment costs, may remain unchanged.

This distinction matters because a 10% fall in sales can produce a much larger percentage fall in profit.

Next consider cash.

Would lower sales mean customers owed you less, or would existing customers simply take longer to pay? Could stock purchases be reduced quickly? Are there loan repayments, tax liabilities or capital commitments falling due?

The exercise becomes more useful when you consider the response rather than simply calculating the damage.

Which expenditure could be postponed? Would you need additional finance? Could prices be changed? Are there underperforming products or services that should be reconsidered? How quickly could management take action?

You can then reverse the exercise.

What happens if sales increase by 10%? Would additional staff be required? Would you need more working capital to finance stock and debtors? Is there sufficient capacity to cope?

This is simple scenario planning.

It does not require anyone to predict exactly what will happen. Its purpose is to understand how the business responds when circumstances differ from expectations.

Accountants can help clients model several scenarios using information that already exists within the accounting records.

Knowing that profits were £50,000 last year is useful.

Knowing what happens to next year’s profit and cash position if sales move 10% in either direction may be considerably more useful

Modern accounting software can give business owners access to financial information almost instantly. That does not necessarily mean they are looking at the right information.

A dashboard containing turnover, bank balance and profit can be useful, but these figures may tell only part of the story.

Consider a business where sales have increased by 10%. That sounds encouraging. If gross margin has fallen at the same time, however, the additional sales may be producing surprisingly little extra profit.

Similarly, a healthy bank balance can disguise problems ahead. VAT, PAYE, Corporation Tax and supplier payments may already account for much of the cash sitting in the account.

This is why useful management information should start with the decisions you need to make rather than the figures your accounting software happens to display.

For example, a business concerned about profitability might monitor gross margin by product, service or customer. One concerned about cash flow could follow debtor days, overdue accounts and expected cash requirements. A business trying to improve productivity might compare staff costs or hours worked with output or revenue.

The important point is to keep the list manageable.

A report containing 25 key performance indicators can easily become something nobody reads. Three or four carefully selected measures, reviewed consistently, may be far more useful.

It is also worth establishing what should happen when a figure moves outside an acceptable range. If gross margin falls below a target percentage, who investigates? If debtor days increase, when does someone contact customers?

Management information becomes valuable when it prompts action.

Instead of asking, “How did we do last month?”, try asking a more useful question:

“What do we need to know now to make next month better?”

That small change of emphasis can turn accounting information from a historical record into a management tool.

1 October 2026 – Corporation Tax payment is due for companies with an accounting period ending 31 December 2025, unless the company is required to make quarterly instalment payments.

5 October 2026 – Deadline for notifying HMRC of a new liability to Income Tax or Capital Gains Tax for the 2025-26 tax year. This may include registering for Self Assessment if you became self-employed, started receiving taxable rental income or received other income or gains that have not already been taxed.

7 October 2026 – VAT returns and payments are normally due for accounting periods ending 31 August 2026, unless a different deadline applies. Businesses paying by Direct Debit should allow sufficient time for HMRC to collect the payment.

19 October 2026 – PAYE, employee and employer National Insurance contributions, student loan deductions and Construction Industry Scheme deductions are due for the month ended 5 October 2026 if payment is made by post.

19 October 2026 – Deadline for submitting the CIS300 monthly return for the month ended 5 October 2026.

22 October 2026 – Electronic payments of PAYE, National Insurance contributions, student loan deductions and CIS deductions are due for the month ended 5 October 2026.

22 October 2026 – Electronic payment deadline for tax and Class 1B National Insurance contributions due under a PAYE Settlement Agreement for the 2025-26 tax year. The deadline is 19 October 2026 if payment is not made electronically.

31 October 2026 – Deadline for submitting a paper Self Assessment tax return for the year ended 5 April 2026. Taxpayers who miss the paper filing deadline can normally file online by 31 January 2027 instead.

31 October 2026 – Corporation Tax returns are due for companies with an accounting period ending 31 October 2025.

31 October 2026 – Companies House accounts are due for private companies with an accounting period ending 31 January 2026. Different deadlines apply to a company’s first accounts.

31 October 2026 – Plastic Packaging Tax returns and payments are due for the quarter ended 30 September 2026 where the business is registered for the tax.

1 November 2026 – Corporation Tax payment is due for companies with an accounting period ending 31 January 2026, unless the company is required to make quarterly instalment payments.

7 November 2026 – VAT returns and payments are normally due for accounting periods ending 30 September 2026, unless a different deadline applies. Businesses paying by Direct Debit should allow sufficient time for HMRC to collect the payment.

19 November 2026 – PAYE, employee and employer National Insurance contributions, student loan deductions and Construction Industry Scheme deductions are due for the month ended 5 November 2026 if payment is made by post.

19 November 2026 – Deadline for submitting the CIS300 monthly return for the month ended 5 November 2026.

22 November 2026 – Electronic payments of PAYE, National Insurance contributions, student loan deductions and CIS deductions are due for the month ended 5 November 2026. As 22 November 2026 falls on a Sunday, businesses should arrange payment early enough for the cleared funds to reach HMRC by the deadline.

30 November 2026 – Corporation Tax returns are due for companies with an accounting period ending 30 November 2025.

30 November 2026 – Companies House accounts are due for private companies with an accounting period ending 28 February 2026. Different deadlines apply to a company’s first accounts.

HMRC has launched an improved online service to make it easier for individuals to register for self-assessment. Anyone who needs to submit a tax return for the first time for the 2025-26 tax year should notify HMRC by 5 October 2026 to avoid a potential penalty.

The new service is available through a Personal Tax Account and includes pre-populated information, online support during registration and the ability to save and return without losing information. Taxpayers will also receive confirmation by email or text when their registration is complete.

Once registered, taxpayers receive a Unique Taxpayer Reference (UTR), which is needed to complete their tax return. Under the new service, the UTR should appear in the taxpayer’s online account within 72 hours, instead of taking up to 15 days to arrive by post.

Taxpayers who are unsure whether they need to submit a tax return can use HMRC’s online checking tool. Those who need to register may include newly self-employed individuals with gross trading income above £1,000, a new partner in a business partnership and taxpayers with more than £2,500 of untaxed income.

The deadline for submitting the 2025-26 self-assessment tax return and paying any tax due is 31 January 2027.

Anyone who no longer needs to complete a tax return should tell HMRC as soon as possible. 

Until HMRC confirms that a self-assessment return is no longer required, taxpayers should continue to meet their self-assessment filing obligations.

The new registration service is currently available to individual taxpayers with a Personal Tax Account. Agents must continue to use the existing registration processes, including using forms CWF1 or an SA1, to register.

Making a trading loss whilst not ideal can sometimes generate a tax refund. If you are a self-employed individual or a member of a trading partnerships, a trading loss can potentially be set against other income or capital gains. This can reduce the amount of tax payable and, where tax has already been paid, may result in a refund.

For the 2025-26 tax year that ended in April, a loss can generally be set against income for the same year or the previous tax year. This means a business that made a profit in an earlier year but has subsequently made a loss may be able to recover some of the tax previously paid.

There are restrictions. For example, the trade must generally be carried on commercially and for profit, rather than as a hobby. Other restrictions can apply depending on the circumstances, including where the individual works fewer than 10 hours a week on the commercial activities of the trade.

There is also a limit on the amount of certain Income Tax reliefs that can be claimed against total income. The limit is generally the higher of £50,000 or 25% of adjusted total income.

A loss can also usually be carried forward and used against future profits from the same trade.

If you have a trading loss, it may provide an opportunity to reduce an earlier tax bill, generate a refund or reduce tax on future profits. The rules can be complex, and we are happy to help advice you on the best way forward.