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Businesses importing certain goods into the UK have received welcome news following the government’s announcement on 23 October 2026 that existing import tariff suspensions on more than 250 products will be extended.

The measures are intended to reduce costs for businesses using imported materials and components, particularly in industries where suitable domestic alternatives may be limited or where import duties increase the cost of manufacturing and distribution.

According to the government, the extensions could maintain savings of up to £155 million annually across affected sectors, including chemicals, plastics, automotive manufacturing, hydrogen, and food and drink production.

What has been announced?

Many of the existing tariff suspensions were due to expire on 31 December 2026. The government has confirmed that qualifying suspensions will generally be extended until December 2028, following consultation with businesses.

A separate group of suspensions due to expire in June 2027 will be extended by six months, until December 2027, while the government considers whether a longer extension is appropriate.

The announcement provides greater certainty for businesses whose purchasing arrangements depend on imported goods that currently benefit from reduced or suspended customs duties.

However, the relief does not apply automatically to every product imported within the industries concerned.

Check the commodity classification

Import duties are determined by the classification of the goods being imported, normally identified through their customs commodity codes. Businesses therefore need to establish whether the particular products they purchase fall within the scope of an applicable tariff suspension.

The UK Trade Tariff provides information about commodity codes, duty rates and available suspensions. Importers should also consider whether any conditions apply to the goods concerned.

Where a freight agent or customs intermediary completes customs declarations, businesses should confirm that the correct classification and relief are being used.

Consider purchasing and pricing decisions

The extension of tariff suspensions may provide an opportunity to review supply contracts, purchasing costs and future pricing arrangements. Businesses should establish whether the benefit of reduced duties is being reflected in the prices charged by suppliers and whether anticipated savings have been incorporated into their financial forecasts.

There is also an opportunity to influence future policy. The government has announced a further window for businesses to comment on existing tariff suspensions and suggest additional products, opening on 11 November 2026 and closing on 3 February 2027.

For businesses regularly importing materials or components, checking the available tariff reliefs could produce worthwhile savings. It may also help provide greater certainty when planning purchases and negotiating longer-term supply agreements.

New figures from the Office for National Statistics suggest that many UK businesses are facing renewed pressure on their operating costs, even where they have not been able to increase the prices charged to customers.

In its Business Insights and Conditions Survey published on 22 October 2026, the ONS reported that 33% of trading businesses experienced an increase in the prices of goods and services purchased during September. By comparison, only 12% reported an increase in the prices of the goods and services they sold.

Although the two figures do not necessarily relate to the same businesses, they illustrate a familiar problem. When purchasing costs increase faster than selling prices, profit margins can come under considerable pressure.

Why small increases matter

Consider a business selling a product for £100, with direct costs of £60. The business earns a gross profit of £40 before meeting its overheads.

If the direct cost increases by 10%, rising to £66, but the selling price remains unchanged, gross profit falls to £34. Although the increase in costs may appear relatively modest, the gross profit earned on each sale has fallen by 15%.

For businesses operating on narrow margins, this type of change can have a significant effect on profitability, particularly where several suppliers introduce price increases over a relatively short period.

The challenge is not necessarily to pass every cost increase directly to customers. Businesses must also consider whether existing prices remain competitive and whether customers are likely to accept changes.

Review costs before changing prices

A useful starting point is to compare the gross profit margins achieved over recent months, identifying products, services or customers where profitability has deteriorated.

This review may reveal opportunities to renegotiate purchasing arrangements, reduce waste, improve productivity or concentrate sales activity on more profitable work.

Businesses should also consider whether their existing quotations and contracts allow sufficient protection against increases in material, labour or distribution costs. Long-term agreements can become particularly problematic where selling prices remain fixed but operating costs continue to rise.

Consider the cash-flow effect

Reduced margins affect more than the profit and loss account. If a business needs to pay suppliers more quickly than it receives payment from customers, higher purchasing costs can increase the amount of working capital required.

Regular management accounts and cash-flow forecasts can help identify these pressures before they become serious.

The latest ONS figures provide a useful reminder that turnover growth does not necessarily translate into improved profitability. Business owners should therefore review their gross margins, purchasing arrangements and pricing decisions together, rather than concentrating exclusively on increasing sales.

November 2026

• 1 November 2026 – Due date for Corporation Tax payable by companies with an accounting period ended 31 January 2026, unless the company is required to pay Corporation Tax by instalments.
• 7 November 2026 – Deadline for the second quarterly update under Making Tax Digital for Income Tax for the 2026-27 tax year. This applies to individuals who are within MTD for Income Tax from April 2026 and covers the second quarterly update period.
• 7 November 2026 – VAT returns and payments are normally due for VAT accounting periods ended 30 September 2026, unless an alternative deadline applies, for example under the Annual Accounting Scheme.
• 19 November 2026 – PAYE and National Insurance deductions for the month ended 5 November 2026 must reach HMRC by this date where payment is made by post. Where payment is made electronically, the normal deadline is 22 November 2026.
• 19 November 2026 – Filing deadline for the CIS300 monthly return for the month ended 5 November 2026.
• 19 November 2026 – CIS tax deducted for the month ended 5 November 2026 must reach HMRC by this date if payment is made by post. Where payment is made electronically, the normal deadline is 22 November 2026.
• 30 November 2026 – Companies with an accounting period ended 30 November 2025 must normally submit their Corporation Tax return to HMRC by this date.
• 30 November 2026 – Private companies with an accounting period ended 28 February 2026 will normally need to file their accounts at Companies House by this date. Different deadlines can apply to a company’s first accounts or where the accounting reference date has been changed.

December 2026

• 1 December 2026 – Due date for Corporation Tax payable by companies with an accounting period ended 28 February 2026, unless the company is required to pay Corporation Tax by instalments.
• 7 December 2026 – VAT returns and payments are normally due for VAT accounting periods ended 31 October 2026, unless an alternative deadline applies, for example under the Annual Accounting Scheme.
• 19 December 2026 – PAYE and National Insurance deductions for the month ended 5 December 2026 must reach HMRC by this date where payment is made by post. Where payment is made electronically, the normal deadline is 22 December 2026.
• 19 December 2026 – Filing deadline for the CIS300 monthly return for the month ended 5 December 2026.
• 19 December 2026 – CIS tax deducted for the month ended 5 December 2026 must reach HMRC by this date if payment is made by post. Where payment is made electronically, the normal deadline is 22 December 2026.
• 30 December 2026 – Deadline for filing the 2025-26 Self-Assessment tax return online where an individual wants HMRC to collect a Self-Assessment liability of less than £3,000 through their PAYE tax code, subject to HMRC’s normal conditions.
• 31 December 2026 – Companies with an accounting period ended 31 December 2025 must normally submit their Corporation Tax return to HMRC by this date.
• 31 December 2026 – Private companies with an accounting period ended 31 March 2026 will normally need to file their accounts at Companies House by this date. Different deadlines can apply to a company’s first accounts or where the accounting reference date has been changed.

Other deadlines to remember

• Capital Gains Tax – Capital Gains Tax on most disposals of UK residential property must normally be reported and paid within 60 days of completion. The actual deadline therefore depends upon the completion date rather than being a fixed monthly diary date.
• PAYE Real Time Information – Employers should also remember that Full Payment Submissions under PAYE Real Time Information are normally required on or before the date employees are paid.

 

HMRC is beginning to issue tax calculation letters (P800) and Simple Assessment notices (PA302) to collect any tax owed on bank and building society interest earned during the 2025-26 tax year.

Some taxpayers may already have received a Simple Assessment for the 2025-26 tax year that did not include their savings interest. If HMRC subsequently receives details of that interest, it may issue a second notice covering the same tax year. This will show the total tax owed, including any amount from the original notice. Taxpayers should deduct any payments already made in order to reveal the outstanding balance.

Taxpayers who pay tax through PAYE generally do not need to take action, as HMRC will adjust their tax code to collect the underpayment. However, if HMRC cannot collect the tax through PAYE, or the amount owed exceeds £3,000, a Simple Assessment notice will explain the amount due and how to pay. Taxpayers whose income from savings and investments exceeds £10,000 must complete a self-assessment tax return.

Interest figures shown on bank statements and tax codes may differ because tax codes include only taxable interest, HMRC may use estimates, and some interest may be covered by tax-free allowances.

Most people can earn some savings interest without paying tax, depending on their circumstances. The Personal Savings Allowance allows basic-rate taxpayers up to £1,000 and higher-rate taxpayers up to £500 of interest tax-free. Additional-rate taxpayers receive no Personal Savings Allowance.

If you believe your Simple Assessment is incorrect you should review the notice promptly, as you have 60 days from its date to formally query it with HMRC. Anyone already registered for self-assessment for the relevant year should ask HMRC to withdraw the Simple Assessment.

If you are unsure whether an assessment is correct or how much remains payable, we can help you review the figures and understand what action may be needed.

HMRC has introduced an automated payment process to speed up refunds for people who may have overpaid National Insurance contributions. The process has been in use since early summer, according to HMRC’s latest Agent Update.

HMRC will write to people it identifies as potentially having overpaid, providing details of their past employment and National Insurance contributions. Recipients should check the information carefully and confirm that it is correct or provide details of any necessary changes.

Taxpayers can respond to HMRC using the online service on GOV.UK or by completing and returning the paper form enclosed with the letter. HMRC is urging recipients not to ignore these requests, as responding will help it establish whether a refund is due.

HMRC will review the information provided and confirm the outcome. Customers can find details of the process in the guidance on applying for a National Insurance refund.

Recipients of this letter should also remain alert to potential scams. Genuine HMRC refund notifications will not ask recipients to click on links. Anyone unsure whether a letter is genuine can check it using HMRC’s online guidance.

The new process aims to help eligible taxpayers receive money owed to them more quickly, but a refund is not guaranteed until HMRC has checked all the relevant details.

Taxpayers who need to pay the High Income Child Benefit Charge (HICBC) for 2025-26 may be able to pay it through PAYE rather than completing a self-assessment tax return solely to report the charge.

The HICBC applies where an individual or their partner receives Child Benefit and the individual’s adjusted net income exceeds £60,000. The amount payable increases with income, reaching the full amount of Child Benefit when adjusted net income reaches £80,000.

The charge can also apply where another person claims Child Benefit for a child living with you and contributes at least an equal amount towards the child’s upkeep, regardless of whether the child is your own.

The charge can be paid through self-assessment or PAYE, depending on the taxpayer’s circumstances. HMRC allows eligible taxpayers to pay through PAYE by adjusting their tax code. Taxpayers can register using HMRC’s online service. Once registered, HMRC will adjust the tax code and notify the taxpayer and their employer or pension provider, where relevant. For the 2025-26 tax year, this must be done before 31 January 2027.

Those who have previously submitted self-assessment returns solely to pay the HICBC can also switch to PAYE. They will need to contact HMRC by telephone to leave self-assessment and register for PAYE payment.

Anyone who must submit a tax return for another reason, such as self-employment income or taxable investment income, must continue to report and pay the HICBC through self-assessment.

Choosing to pay the HICBC through PAYE can simplify tax reporting for eligible taxpayers, avoiding the need to file a self-assessment tax return solely because of the charge.

HMRC has updated its guidance on how individuals and organisations can apply for a certificate of residence or letter of confirmation to prove UK tax residence.

A certificate of residence can be used to claim tax relief in another country where UK residents pay tax on foreign income. It confirms to the overseas tax authority that the applicant is UK resident. A certificate can be issued where there is a double taxation agreement with the country concerned and the applicant is entitled to treaty benefits.

A letter of confirmation may instead be appropriate where there is no double taxation agreement or proof of UK residence is required for another purpose. The overseas tax authority decides whether relief from foreign tax can be granted.

The online service is available to individuals and sole traders, companies, partnerships, trusts, charities, public bodies, pension schemes and collective investment schemes. Agents can also apply directly on behalf of taxpayers.

Applicants need to provide details including the country the certificate is required for, the relevant double taxation agreement, type of income and period covered. A future date cannot be requested.

Further information is required where a tax return has not yet been filed, including days spent in the UK days during the tax year or years where a certificate is required.

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.