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News
What is changing in tax, business and the economy.
A short, plain-English round-up of the announcements that affect our clients, updated as things happen. For deeper guides, see Insights.
Last updated 23 October 2026
Budget
Autumn Budget set for Wednesday 28 October
The Chancellor delivers the Budget next Wednesday alongside new forecasts from the Office for Budget Responsibility. Reports point to a broadly neutral statement with income tax, VAT and the main corporation tax rate protected by manifesto pledges, and possible help with business rates for small high-street firms. Already legislated and unaffected by the speech: dividend tax rose to 10.75% and 35.75% in April 2026, and property and savings income will be taxed at 22%, 42% and 47% from 6 April 2027.
What it means for you: Nothing changes until the Chancellor sits down, but landlords should already be planning for the higher property income rates from April 2027. We will publish a plain-English summary on the day.
100 days to the 31 January self assessment deadline
HMRC expects around 12 million 2025/26 tax returns by 31 January 2027 and is urging people to file early so they know what they owe and can budget for it. Paper returns were due by 31 October, and anyone new to self assessment should have registered by 5 October. HMRC also repeated its warning never to share sign-in details, even with an agent.
What it means for you: Send us your 2025/26 records now. Filing early does not mean paying early, and it avoids the automatic £100 late-filing penalty.
Small companies will not have to publish a profit and loss account until April 2028
Five days before the Budget, the Treasury announced a package of regulatory and tariff savings it values at almost £800 million a year. It includes a pause, until April 2028, on the requirement for small companies to file a profit and loss account on the public register, simpler public-sector bidding for sectors including construction, and an extension of tariff-free imports on more than 250 products to December 2028.
What it means for you: If you run a small limited company, your profit figures stay off the public register for now. Filing deadlines and the accounts themselves are unchanged.
Minimum wage for April 2027: Low Pay Commission advice due by the end of October
The Government asked the Low Pay Commission to recommend the rates for 1 April 2027 by the end of October, keeping the National Living Wage at two-thirds of median earnings and moving 18 to 20 year olds towards the adult rate. The Commission's April projection put the 2027 National Living Wage at around £13.18, against £12.71 today. The recommendation had not been published as we went to press.
What it means for you: Budget for a rise of roughly 4% in wage costs from April 2027. The exact figure may arrive with the Budget or shortly after.
Inflation rises to 3.5%; the economy grew 0.1% in August
Consumer price inflation rose to 3.5% in the year to September, up from 3.1% in August, driven mainly by motor fuel and air fares. The economy grew 0.1% in August after 0.4% in July, and 0.7% over the three months to August, but construction output fell 1.0% over that three-month period.
What it means for you: Fuel is the cost to watch if you run a van, and the construction dip is worth noting if your work depends on bigger contractors.
New duties for employers: harassment from 30 October, unfair dismissal after six months from 1 January
From 30 October employers must take all reasonable steps to prevent sexual harassment, including by customers and suppliers. From 1 January 2027 unfair dismissal protection starts after six months' service rather than two years, with the compensation cap removed, and new starters must receive a written statement of trade union rights. Tribunal claim windows have been six months since 1 October, and statutory sick pay has been payable from the first day of sickness since April.
What it means for you: If you employ anyone, review your probation and dismissal process before January and put a short harassment policy in place now.
The Commercial Payments Bill passed its third reading in the Lords on 20 October and now goes to the Commons. It would cap most business-to-business payment terms at 60 days, or 30 days where nothing is agreed, make statutory late-payment interest impossible to waive and give the Small Business Commissioner more power. The Commissioner's office hopes for Royal Assent around the turn of the year, with the rules starting a few months later.
What it means for you: Subcontractors and suppliers to larger firms should get stronger payment rights in 2027, but nothing has changed yet, so keep chasing invoices as normal.
First directors prosecuted for failing to verify their identity; transition period ends in November
Three directors were fined on 16 September for acting while unverified, one of them for allowing a fellow director to act. Identity verification became mandatory on 18 November 2025 with a 12-month transition. Existing directors must provide their personal code with the company's next confirmation statement, which cannot be filed until every director is verified, and people with significant control have their own 14-day window.
What it means for you: Verify now through GOV.UK One Login, or ask us to do it for you. Acting as a director without verification is a criminal offence.
Bank of England holds Bank Rate at 3.75%; next decision on 5 November
The Monetary Policy Committee voted six to three to hold Bank Rate at 3.75%, with the three dissenters preferring a rise to 4%. The next announcement is on 5 November, after the Budget and after September's jump in inflation.
What it means for you: Borrowing costs are not falling and a rise is now a live possibility. Check any variable-rate finance, van loans or buy-to-let mortgages.
436,000 sole traders and landlords file their first Making Tax Digital update; next one due 7 November
More than 436,000 sole traders and landlords submitted their first quarterly update by 7 August, with 570,000 signed up out of roughly 864,000 HMRC believes are in scope. The second update, covering 6 April to 5 October, is due by 7 November. HMRC will not issue penalty points for late updates in 2026/27, but points start from 6 April 2027, when the income threshold also falls to £30,000.
What it means for you: If you earn over £50,000 from trade or rent you should be filing quarterly now. If you earn over £30,000, you need software in place by April 2027, and we can set it up.
