Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) is one of the biggest changes to the UK tax system in recent years.

It will affect many self-employed individuals and landlords, so it’s important to understand what’s coming and how to prepare.

What is MTD for ITSA?

MTD for ITSA is a new way of reporting income to HMRC. Instead of submitting one Self-Assessment tax return each year, affected taxpayers will need to keep digital records and submit quarterly reports and an End of Year Declaration, BUT it only applies to individuals with income from self-employment and/or property.

When does it start?

MTD for ITSA will be introduced in phases:

• From April 2026 – for individuals with total turnover from self-employment and property over £50,000 but based on the figures reported in the tax return 2024-25.
  

  Please note that salary and dividends from a Limited Company is not considered Self-Employment income.

• From April 2027 – for individuals with total turnover from self-employment and property over £30,000 based on the figures reported in the tax return 2025-26.

For clients of Cogent Accountants for whom we prepare Tax Returns, we will know the relevant figures for turnover and we will contact you if you need to register for MTD for ITSA.

For those clients we DO NOT prepare Tax Returns for, you will need to address the MTD for ITSA urgently.

The global uncertainty caused by the ongoing conflict in the Middle East and Ukraine has sent lenders into a spin, as inflation in the UK is likely to rise.

As a result, the UK mortgage market is experiencing a period of high volatility, which is causing rates to rise across a number of mortgage products.

Contractors can often find it more challenging to obtain and renew mortgages in comparison to workers who are directly employed by a company, so it is important to stay on top of these challenging times.

What’s happening right now

At the moment, mortgage rates are rising quickly, with average fixed rates now above 5.5 per cent at the time of publication.

Many lenders are frequently repricing or withdrawing deals given to borrowers, which is making it harder to secure a rate and manage affordability if you are buying a new home or remortgaging.

So far, more than 1,000–1,500 mortgage products have disappeared from the market and some of the best deals now only last a few days due to rapid changes.

The Bank of England base rate is currently 3.75 per cent, but expectations of it falling later in the year have changed as global events are expected to lead to inflation, in a large part due to higher energy and fuel costs.

What this means for you

Unfortunately, borrowing costs have increased noticeably in a short space of time, with first-time buyers and those with a small deposit being affected the most.

Lenders are tightening their affordability criteria and restricting products to certain groups. This is exacerbated by repayment costs rising alongside wider cost-of-living increases due to inflation.

The dilemma, do you fix now or wait for a better rate in the near future? At the moment, it is hard to predict what direction the mortgage market will take, so it is best to seek professional advice from a broker who specialises in products designed for contractors if you are concerned.

Specialised mortgages for contractors

We understand that many of our clients will need advice on the subject of contractor mortgages and we can recommend you to a quality firm providing professional mortgage advice that you can trust and who will work hard to find the best solution for you, whatever your particular requirements.

We have developed a close relationship with Windfall Finance so that you can draw on their experience and expertise to meet all of your mortgage needs.

Please contact Jeremy – jeremy@cogentaccountants.co.uk – for further details. You may receive preferential rates from Windfall Finance if you are a client of Cogent.

Your home may be repossessed if you do not keep up with repayments on your mortgage.

Financial advice given by Windfall Finance is regulated and authorised by the Financial Conduct Authority.

Going into the latest Spring Statement, the Chancellor made it very clear that this would not be a full fiscal event and that any new policy changes would be off the table.

Rising to her feet in Parliament that is exactly what Rachel Reeves delivered, but it was against a back drop of rising economic uncertainty that she could not have predicted when she set the date for her forecast.

In her opening words to the MPs gathered, she made it very clear that the ongoing conflict in the Middle East was adding considerable obstacles to improvements in the global economic outlook.

Already, oil and gas prices have surged and many of the world’s leading trading floors have recorded significant downturns, but nevertheless Reeves painted a picture of a UK economy that would continue to grow.

Some businesses and individuals may be thankful for little or no change, but others are likely reviewing the Statement and wondering why Reeves didn’t do more to lay the ground for help with a new, looming cost crisis.

• Economic outlook
• Unemployment rising
• The impact of conflict
• The Government’s plans
• Preparing for an uncertain future

Economic outlook

The Chancellor was keen to demonstrate that the Government’s existing plans would deliver “economic stability in an uncertain world.”

The Office for Budget Responsibility (OBR) report, delivered to The Treasury on 26 February, already painted a picture of slow growth prior to any knowledge of a growing global conflict.

The OBR’s report shows that the nation’s growth forecast has been reduced in 2026 to 1.1 per cent – down from the 1.4 per cent growth forecast in November’s Autumn Budget.

However, from 2027, growth is forecast to increase to 1.6 per cent (up from 1.5 per cent from last year’s forecast) and will grow at a similar rate in 2028, before slowing slightly to 1.5 per cent in 2029 and 2030.

Whilst the Government may be focused on this positive growth, the predictions is still far below GDP growth seen in the years ahead of the 2008 financial crisis – almost two decades ago.

Despite this weaker economic performance and the anticipated rising costs from global conflict, the OBR has forecast that inflation will actually drop to 2.3 per cent in 2026, down from the 2.5 per cent forecast in the Autumn Budget. It believes that the UK will still meet its target of 2 per cent inflation by 2027.

As many economic pundits have already pointed out, this forecast may have already been out of date at the time it was delivered due to the impact of global conflicts.

Combined, these events create a powder keg of economic uncertainty, which could restrict investment and decision-making within many businesses.

Unemployment rising

Unemployment is expected to rise at a far quicker rate this year – increasing from 4.75 per cent in 2025 to a peak of 5.3 per cent in 2026.

This is quite a significant rise, given that the last forecast in November had expected unemployment to only increase to 4.9 per cent this year.

The OBR has also raised its forecast for unemployment in 2027 to 4.9 per cent, from 4.6 per cent previously.

In its report, the fiscal watchdog said that “subdued hiring demand” meant that fewer jobs were available, with the Chancellor pointing out that more would be done to tackle unemployment, in particular, to help young workers into a career.

Long-term, the forecasts predict that the unemployment rate will fall gradually to 4.1 per cent by 2030/31.

The biggest barrier to this may remain the challenges business face when hiring. Experts, like the Bank of England, have suggested that the Government’s previous fiscal policies, including increases to the National Minimum Wage and the National Insurance hike, have caused employment costs to rise.

The impact of conflict

We can’t ignore the elephant in the room and neither did the Chancellor, but the current conflict in the Middle East is likely to have significant financial ramifications.

Rachel Reeves recognised that the actions of those involved, including the closure of one of the world’s most important waterways – The Straits of Hormuz – would have a knock-on effect on oil and gas prices.

The Chancellor promised no more austerity and confirmed that the public purse now had greater headroom to sustain spending, without having to borrow as much.

Whether this means fewer tax rises in future is not yet clear, but what is, is that the longer the current conflicts roll on, the greater the impact on global business.

This will have a trickle-down effect on many aspects of our lives, from energy costs to the price of transportation, all of which will add additional cost to the way we live.

The Government’s plans

The fact that the Chancellor didn’t address the challenges ahead by creating any new fiscal policies, including support for SMEs, may be questioned by some.

She was trying to sell a picture of stability, by confirming that in future the single fiscal event – promised in the Labour manifesto – would mean longer periods without disruptive change.

However, given the events of recent days, some may query why the Chancellor didn’t use this opportunity to provide greater reassurance or outline proposals that might help businesses weather the economic storm ahead.

In two weeks’ time, Rachel Reeves will speak again as she delivers her next Mais Lecture. During her statement she confirmed that this speech would “set out three major choices that will determine the course of our economy into the future.”

Preparing for an uncertain future

Whilst many businesses will welcome the lack of change within the Spring Statement for the stability it brings, the wider world of finance is less certain and will be dependent on a number of factors outside of the control of even the UK Government.

That is why it is more important than ever for businesses and individuals to have a clear picture of their financial health, especially ahead of the fairly significant tax changes within the next few tax years outlined in the previous Autumn Budget.

To read the Chancellor’s full speech, please click here, or to read the OBR’s economic and fiscal outlook here.

A huge thank you to everyone who took part in our latest Refer a Friend promotion.

We received some brilliant introductions but, as always, there could only be one name drawn at random.

Congratulations to….

Pedro Escalona Tapia from West Drayton, Middlesex

Pedro is the lucky winner of One4all Gift Cards worth £500 and to say he’s pleased is an understatement. He told us he’s “over the moon” and we cannot blame him!

His winning referral? Victor Brito Gutierrez, who recently joined Cogent after Pedro recommended our services. A perfect example of how a simple introduction can pay off in a big way for everyone.

Pedro has always enjoyed working with computers, reading (mainly history and technical books) and listening to classical music. He also really enjoys travelling, especially to the warmth of the Mediterranean. He ranks Spain, Italy and Greece as some of his favourite places to visit.

Asked what he’s planning to do with his £500 One4all gift card, he’s currently deciding on whether to put some of the money towards a trip to one of his favourite destinations or upgrade his computer systems.

That’s the beauty of the One4all gift card. Pedro has the choice of what he wants to do with the funds and when to do it!!

Pedro knows his referral Victor as they’ve previously worked together and he’s always known him to be professional, reliable and technically strong. That’s why he felt confident recommending him to Cogent.

Of course, the good news does not stop there. As part of our referral scheme, Pedro will also receive £100 for introducing Victor and Victor gets £100 too, just for coming on board.

Thank you again to everyone who sent referrals our way. We really appreciate you spreading the word about Cogent.

Although the competition is over, if you know someone who could benefit from our advice and support, you can still receive £100 for each new referral.

Refer a friend to Cogent today

If you would like to know more about our services or how the referral scheme works, just get in touch.

Contracting can be hugely rewarding as many of you know, but finding your next role can sometimes feel uncertain, especially when projects end unexpectedly or the market feels crowded.

The good news is that contractors across all industries are still in demand. The challenge is knowing where to focus your effort and how to stand out.

Here are some practical ways contractors in any field can improve their chances of securing temporary work.

Do not rely on just one route

Many contractors default to the same recruiter or job board they have always used and while familiarity can help, relying on a single channel can limit your options.

A stronger approach is to keep several routes open at once:

• Recruiters who genuinely understand your skillset
• Direct conversations with previous clients
• Industry-specific events and professional groups
• Social media platforms like LinkedIn

If one route slows down, the others keep momentum going, but it is important that you continue to market your skills and create a pipeline of new opportunities.

Stay visible to the right people

Temporary roles are often filled quickly, sometimes before they are widely advertised, so being front of mind with the right people can make all the difference.

That might mean:

• Reconnecting with former clients or project sponsors
• Letting previous colleagues know you are available
• Keeping your professional network up to date

A short conversation or message at the right time can open doors far faster than sending dozens of applications.

Focus on outcomes, not just experience

When applying for contract roles, what you have delivered matters more than how long you have been doing it.

Instead of listing every task you have ever carried out, focus on:

• Problems you solved
• Improvements you made
• Results you achieved, especially where they can be quantified and evidenced

This helps potential clients quickly understand how you can add value to their organisation from day one.

Keep your professional profile sharp

Your CV and online presence act as your shop window. They do not need to be flashy, but they should be clear, current and easy to understand.

Make sure:

• Your availability is obvious
• Your recent projects are easy to scan
• Your experience matches the type of work you want next

Don’t keep using the same old CV from years ago, over and over again. Each CV you submit should be adapted to the role, just like a covering letter.

Prepare for practical conversations

Interviews for temporary roles are often less about formal questions and more about fit.

Clients want to know:

• Do you understand their situation?
• Can you slot into the team quickly?
• Will you make things easier rather than more complicated?

Showing that you understand their pressures and priorities can be just as important as technical expertise.

A flexible mindset helps

Temporary work often rewards adaptability. Being open to slightly different sectors, project lengths or scopes can uncover opportunities you might otherwise miss.

Try not to pigeon-hole yourself and think about how your skills and knowledge can be applied to different fields.

Sometimes a shorter contract or a slightly different role can lead to longer-term work through strong delivery and relationships.

No single solution

Finding temporary work as a contractor is rarely about one perfect application. It is about visibility, relationships, clarity and confidence.

By staying connected, focusing on outcomes and keeping your approach flexible, you put yourself in a strong position to secure your next role, whatever your field.

If you would like guidance on managing your contracting finances or planning between assignments, the Cogent team is always here to help.

If you hold, trade or earn cryptocurrency, an important change has already taken effect. Since the start of this year, HMRC now receives far more information about crypto activity than ever before and that has real implications for contractors.

These changes are not about banning crypto or discouraging investment. Instead, they bring digital assets firmly into the mainstream tax system.

Cryptocurrency exchanges and wallet providers are now required to automatically report user information and transaction data to HMRC.

This means HMRC no longer needs to rely solely on what individuals choose to disclose. Instead, it can cross-check tax returns against data provided directly by crypto platforms.

In simple terms, crypto is now treated much more like shares, property or other financial assets when it comes to tax visibility.

The reporting rules apply to crypto-asset service providers that deal with UK residents. This includes platforms based in the UK and overseas providers that offer services to UK users.

If you are a contractor using exchanges or online wallets to buy, sell, swap or receive crypto, your activity is likely to fall within scope.

What information is shared with HMRC?

Crypto platforms are now required to collect and report a range of personal and transactional details, including:

• Basic identity information such as name, address, date of birth and tax residency
• Transaction data covering purchases, disposals, swaps and transfers
• Information needed to identify gains, losses and income

This data is passed directly to HMRC, allowing it to compare reported crypto activity with Self Assessment returns.

Why HMRC is focusing on crypto now

HMRC has always been clear that crypto is not tax-free. Capital Gains Tax can arise when crypto is sold or exchanged and Income Tax may apply where crypto is earned through activities such as staking, mining or payment for services.

Historically, enforcement has been difficult. Crypto’s decentralised nature and inconsistent reporting by platforms made it harder for HMRC to see the full picture.

The new reporting framework closes that gap. It gives HMRC far greater visibility and reduces the risk of accidental or deliberate under-reporting.

You should now assume HMRC can now see your exchange-based activity, which makes accurate record-keeping more important than ever.

Transaction histories, acquisition costs, disposals and income streams all need to be properly tracked and reported.

This is particularly relevant for contractors who:

• Use multiple platforms or wallets
• Regularly swap between different crypto assets
• Earn crypto alongside traditional contract income

Crypto tax can be more complex than it looks

Crypto taxation is rarely as simple as total sales minus total purchases. Different rules can apply depending on whether an asset is treated as capital or income, how pools are calculated and how specific transactions are structured.

For contractors juggling contract work alongside crypto investments, professional support can be helpful.

An adviser who understands both tax rules and how crypto platforms actually work can help ensure:

• Gains and losses are calculated correctly
• Disclosures are complete and consistent
• Returns align with HMRC’s expectations

The new rules do not require individuals to give HMRC access to private keys or wallet passwords.

However, there are still legal responsibilities. Providing inaccurate personal information to a platform or failing to declare taxable gains or income can result in penalties, interest and further HMRC scrutiny.

Deliberate concealment carries much more serious consequences.

How you can prepare

Crypto may still feel innovative and fast-moving, but from a tax perspective it is now firmly part of the established system.

For contractors, the sensible approach is not to panic, but to prepare. Keep good records, understand where tax may arise and seek advice where transactions become complex.

As HMRC’s visibility increases, clarity and accuracy are the best ways to stay compliant and confident.

***PLEASE IGNORE THIS REMINDER IF YOU HAVE ALREADY SENT US YOUR QUESTIONNAIRE***

We are fast approaching the deadline for filing your Self-Assessment tax return, which is 31 January 2026.

If you would like Cogent to prepare your tax return, please complete and return the Self-Assessment Tax Return Questionnaire for the tax year 2024/25 as soon as possible.

As we are now very close to the key 31 January date, we cannot guarantee to complete the tax return to meet the deadline, so it is important that you complete the questionnaire as soon as possible.

Outstanding Balancing Payments for 2024/25 and the First Payment on Account for 2025/26 are also due and payable by 31 January 2026 and interest will be charged on late payment.

You can request a questionnaire for 2024/25 by emailing tax@cogentaccountants.co.uk

The standard charge, including VAT, for a basic tax return, is £250 as we have passed the deadline to receive this service at a discounted rate. Please note, more complicated tax returns, where additional work or supplements are required, will be subject to additional charges.

If you have a second shareholder, they may also need to file a tax return, even if they haven’t previously. For further advice, please contact our Tax Department.

Penalties for late filing of tax returns can be as much as £1,600, even when there is no tax due, so please ensure your tax return is filed on time, whether you ask us to prepare it for you, or you have made other arrangements.

Please return your completed questionnaire together with any attachments by email only to our Tax Department – tax@cogentaccountants.co.uk

You are required to file a tax return if:

• You have been asked to file one by HMRC
• You have a tax liability for the year (e.g. additional and higher rate tax, student loan repayments, high-income child benefit charge or if you have any income which has not been taxed at source)
• You have a new source of income that needs to be declared.

***PLEASE IGNORE THIS REMINDER IF YOU HAVE ALREADY SENT US YOUR QUESTIONNAIRE**

As the UK looks ahead to the 2026/2027 tax year, many businesses and contractors are reassessing how contract labour is engaged.

While the IR35 rules themselves are not changing, new compliance measures coming into force for umbrella companies in April 2026 could reshape behaviour across the contractor market in a way that favours well-structured outside IR35 arrangements.

The changes centre on new Joint and Several Liability rules introduced by the Government as part of its wider crackdown on non-compliance within umbrella company supply chains.

The intention is to ensure the correct Pay-As-You-Earn (PAYE) and National Insurance Contributions (NICs) are paid to HMRC.

The impact, however, could be far more far-reaching for contractors looking to work outside of IR35.

Why umbrella risk may drive change

From 6 April 2026, unpaid or incorrectly calculated PAYE and NIC relating to umbrella workers can be transferred up the supply chain.

Liability will first fall to recruitment agencies and, if necessary, to end clients. Crucially, there is no statutory defence.

Even where thorough due diligence has been carried out, businesses may still be exposed.

For many organisations, this introduces a level of financial and reputational risk that will be difficult to ignore.

As a result, many businesses are already reviewing their relationships with umbrella companies to see if there is a better way to acquire the talent they require.

This review should result in genuine outside IR35 engagements coming back into vogue as businesses attempt to derisk their operations.

When contracts are correctly structured and genuinely sit outside IR35 and work is delivered via a Personal Service Company (PSC), the umbrella model and consequent risk is removed altogether.

We expect more businesses to explore Statement of Work arrangements, project-based delivery and clearly defined work packages.

These models not only align with outside IR35 principles but also offer greater clarity around outcomes, costs and accountability.

What this means for contractors and businesses

Rather than reducing contractor use, many organisations are likely to become more selective and more deliberate in how they engage.

This creates an opportunity for contractors who operate compliantly and for businesses willing to structure engagements properly.

At Cogent, we see this as a positive shift. With the right advice and planning, contracts outside of the IR35 rules may become a more attractive and sustainable option for both contractors and the clients who engage them.

The key will be getting the structure right from the outset and understanding where risk truly sits.

As a director of your own limited company, you can provide yourself and your employees with small, tax-free perks known as “trivial benefits.”

These benefits are exempt from tax and National Insurance as long as all rules are met.

These benefits are becoming more popular and no changes were made in the recent November 2025 Budget.

If the provision of the trivial benefit meets the required conditions, then it is tax free in the hands of the recipient and will not be subject to national insurance contributions.

What counts as a trivial benefit?

A benefit is considered trivial if it meets all of the following conditions:

• Cost is £50 or less (including VAT).
• It is not cash or a cash voucher.
• It is not a reward for work performed or a contractual entitlement.
• It is provided for a genuine non-work-related reason (e.g., birthday, Christmas, thank-you gesture).

Examples of acceptable trivial benefits

• A £30 bottle of wine or chocolates as a gift.
• Flowers or a small gift for a special occasion.
• Gift Voucher (for example Amazon)
• Small seasonal gifts (Christmas, Easter, Birthday, Religious Festivals etc.).

Limits for directors

If you are a director of a close company (most contractor limited companies are), you can claim:

• Up to £50 per benefit, AND
• Up to £300 total per tax year for the director.

This £300 annual cap applies only to directors and only for their trivial benefits, not for employees.

Employees (excluding directors)

Employees can receive multiple trivial benefits with no annual cap, as long as each one stays within the £50 rule and meets the criteria (but we would not advise exceeding the £300 Directors limit for employees).

Important restrictions

• You cannot claim a trivial benefit if it is intended to reward performance or is part of any contractual agreement.
• You cannot reimburse yourself for cash and call it a trivial benefit.
• If the cost exceeds £50 by even £1, the full amount becomes taxable (not just the excess).

How to record trivial benefits

Keep simple evidence such as:

• Receipt for the item.
• Brief note of the occasion (e.g., “Christmas gift”, “Birthday gift”).
• Who received the benefit.

These records support your company accounts in case HMRC requests them.

Why use trivial benefits?

• Tax-free and NI-free for both company and director/employee.
• Fully tax-deductible expense for the company.
• A simple and legitimate way to extract small amounts of value from your company.

If you require any further information, please speak to your Account Manager.

The Government faced a difficult job going into the Autumn Budget, as they navigate a growing national deficit, a seemingly never-ending cost-of-living crisis and political challenges.

From the outset, the Chancellor Rachel Reeves made it clear that this would be an Autumn Budget that focused on fairness, with everyone playing their part in reducing national debt and funding spending on the people in society who need help the most.

Unsurprisingly, this means an increase in taxation across a number of areas, not least the substantial decision to freeze personal tax rates for a further three years.

Against a wide backdrop of inflation above the Bank of England’s two per cent target and rising interest payments for the public purse, the Chancellor also made it clear that higher earners and those with more wealth would be expected to pay more.

At the head of these taxes on wealth is the decision to introduce a ‘mansion tax’, a higher rate of tax on income from dividends, property and savings and a new cap on tax relief to salary sacrifice pension schemes.

Whilst personal tax focused heavily within the Autumn Budget, businesses didn’t entirely escape the net, as Reeves introduced reductions to the writing down capital allowance and a cut to the Capital Gains Tax relief on Employee Ownership Trusts.

However, the biggest sting in the tail for many businesses was the additional burden of higher employment costs, as the Government increases the National Living and National Minimum Wage once again.

Having faced endless jibes from the opposition, Reeves closed her latest speech with a focus on helping those in society and delivering support that would boost growth, reduce inflation and assist with the cost of living.

• Economy and deficit
• Personal tax freeze
• Business tax
• Tax on wealth
• Electric cars and transport
• Spending and investment
• Savings and pensions
• Final thoughts

Economy and deficit

A key promise in Labour’s manifesto was to bring stability to the UK economy and reduce the national debt over the course of the current parliament.

Despite a rocky start to her role as Chancellor and the discovery of a larger than expected black hole in the public finances, Reeves rose proudly to announce that her fiscal rules were working, even if it meant additional personal and business tax hikes – the “necessary choices” she announced in her pre-Budget speech.

According to the OBR, UK GDP will grow by 1.5 per cent in 2025, which is 0.5 per cent above the forecast from earlier this year.

However, in future years, the outlook is less positive. In 2026 the economy is expected to continue to grow by 1.4 per cent, but this is below the previous forecast of 1.9 per cent.

Similarly in 2027, growth will only reach 1.6 per cent, which is 0.2 per cent behind the previous estimate. This trend of slower growth continues through to the end of the current forecast period in 2029.

Despite this slowdown, the Government will reduce its deficit over the next two years and will eventually enter surplus by the 2027/28 tax year. This surplus will continue to grow to £24.6 billion by 2030/31.

The Chancellor was pleased that her decision to increase taxes has more than doubled her headroom to keep within her fiscal rule to balance the budget, from £9.9 billion to around £22 billion.

However, before the Government gets to this point, tough decisions need to be made including a variety of tax hikes in the years ahead.

Personal tax freeze

The biggest and possibly furthest reaching announcement in the Autumn Budget is the Government’s decision to freeze personal tax thresholds until April 2031 – extending the current freeze for another three years.

Whilst politically this means that Labour avoids breaking its manifesto pledge to not raise personal tax rates, the reality is that this change is a tax rise in all but name.

This change will affect income tax thresholds and the equivalent NICs thresholds for employees and self-employed individuals. Digging deeper into the Chancellor’s red book, it will also extend the freeze on Inheritance Tax (IHT) rates for a further year, April 2030 to April 2031.

Deciding to freeze the income tax thresholds is expected to bring in around £8 billion to the treasury, but it will also drag nearly one million more people into paying tax and force hundreds of thousands of taxpayers into higher tax bands due to fiscal drag.

If there was some consolation it was to those already worried about the upcoming reform to Agricultural Property Relief (APR) and Business Property Relief (BPR) from April 2026.

During her speech, the Chancellor confirmed that any unused £1 million allowance for the 100 per cent rate of APR and BPR will be transferable between spouses and civil partners. This includes if the first death was before 6 April 2026.

Acknowledging the costs that this would add to the lives of working people, Reeves did commit to driving energy bills down by axing the ECO scheme. This will cut average household bills by £150 each year.

Business tax

Following on from substantial changes in the previous Budget to business tax, the Chancellor made very few changes to the way organisations will be taxed.

However, she did confirm that from April 2026, the main rate of writing down allowance would be reduced by four percentage points to 14 per cent.

To ensure that businesses weren’t too disadvantaged, a new first-year allowance of 40 per cent for main‑rate assets will be introduced to maintain the Government’s commitment to help businesses invest.

For those looking to exit their company there was another blow, however, as the Government will restrict Capital Gains Tax relief on Employee Ownership Trusts from 100 per cent to 50 per cent.

Although not a tax per se, the biggest change for many businesses will be increases to the National Minimum and National Living Wage.

From 1 April 2026, the rates will increase as follows:

• National Living Wage – £12.71 per hour (up 4.1 per cent)
• National Minimum Wage for 18-20 year olds – £10.85 (up 8.5 per cent)
• National Minimum Wage for 16-17 year olds and apprentices – £8.00 per hour (up 6 per cent)

Tax on wealth

Many expected the Government to tax wealth heavily and whilst there were certainly a number of measures intended to do this and a lot of rhetoric from Reeves and the front benches, the reality fell short of the expectations.

One of the key changes was an increase to income tax against dividends, property and savings.

From April 2026, the ordinary and upper rates of tax on dividend income will increase by 2 percentage points. The additional rate will remain unchanged.

A year later in April 2027, new separate tax rates for property income will be introduced as follows:

• The property basic rate – 22 per cent
• The property higher rate – 42 per cent
• The property additional rate – 47 per cent

The Government will also increase the tax rate on savings across all bands by 2 percentage points in the same year.

In addition to this change, a new High Value Council Tax Surcharge – already dubbed a ‘mansion tax’ – will be introduced for homes worth more than £2 million.

This will equate to an annual charge for properties worth more than £2 million starting at £2,500, rising to £7,500 for properties worth more than £5 million.

Electric cars and transport

The number of electric vehicles on the road has risen rapidly thanks to various incentives, but the Autumn Budget contained considerable changes for this group of road users.

The Chancellor’s speech and accompanying red book sets a clearer long-term framework for electric vehicles, balancing new charges with wider financial support and incentives.

From April 2028, a new Electric Vehicle Excise Duty will introduce a per-mile charge for electric and plug-in hybrid cars, to be paid alongside existing Vehicle Excise Duty.

Electric cars will pay half the fuel duty equivalent (around 3p per mile), while plug-in hybrids will pay half of that rate again. The detailed design is now out for consultation until March 2026.

Alongside this new charge, the Government is expanding support for the sector. An extra £200 million is being invested in charging infrastructure, split between a new local authority fund for residential and workplace chargepoints and a further allocation for home and business charging.

A 10-year business rates exemption will also apply to eligible charging points and electric-only forecourts, reducing costs for operators.

In a significant move for buyers, the threshold for the Vehicle Excise Duty Expensive Car Supplement will rise to £50,000 for zero-emission vehicles.

This will apply to cars registered from April 2025 and will come into effect from April 2026.

The Electric Car Grant is also being strengthened, with an additional £1.3 billion of funding and an extension to 2029-30.

There are updates to company car taxation too. Plans to bring employee car ownership schemes into the Benefit in Kind rules have been delayed until April 2030, with transitional arrangements running until 2031. First-year capital allowances for zero-emission vehicles and charging equipment have been extended to 2027.

Plug-in hybrids will also benefit from a temporary Benefit in Kind tax easement until April 2028, preventing sharp increases as new emissions standards come into force.

For those not ready or able to make the move to zero-emission vehicles, the Government confirmed that the current 5p cut to fuel duty will remain in place up until the beginning of September 2026.

Spending and investment

The tax hikes were offset by spending elsewhere, with the Government committing to an additional £12 billion in the Chancellor’s measures.

One key commitment, as part of its mission to end child poverty, was the removal of the two-child limit in the Universal Credit Child Element from April 2026.

However, its spending focus wasn’t just on social schemes as the Government provided investment to a wide range of schemes.

The Autumn Budget outlines a broad programme of investment aimed at strengthening regional economies, improving infrastructure and accelerating growth across the UK. A series of new funds sits at the heart of this approach.

These include the £30 million Kernow Industrial Growth Fund, designed to back Cornwall’s strengths in critical minerals, renewable energy and marine innovation and a £500 million Mayoral Revolving Growth Fund

This will allow Mayors in key city regions to co-invest with central Government to unlock stalled developments and overcome finance barriers.

A new Local Growth Fund will also provide just over £900 million over four years to a wide group of Mayoral Strategic Authorities, giving each the flexibility to support local infrastructure, business investment, employment initiatives and skills programmes.

Targeted support continues through the Growth Mission Fund, which has already committed funding for projects ranging from a sports quarter in Peterborough to a STEM centre in Darlington.

Investment zones and freeports continue to form part of the wider industrial strategy.

Business cases have now been approved for the Flintshire and Wrexham Investment Zone, Anglesey Freeport and the Forth Green Freeport, with details also confirmed for the Northern Ireland Enhanced Investment Zone.

The Budget also commits record levels of local road maintenance funding, rising to more than £2 billion a year by 2029–30, enabling the Government to exceed its commitment to fix an additional one million potholes annually.

In energy and industrial development, the North Sea Future Plan sets out how the UK will continue supporting investment in domestic oil and gas, while up to £14.5 million will be channelled into industrial projects in Grangemouth to help create jobs.

Other major transport and infrastructure commitments include long-term support for the Docklands Light Railway extension to Thamesmead, funding for the next stage of the Lower Thames Crossing and brownfield remediation in Port Talbot to unlock development linked to the Celtic Freeport.

Savings and Pensions

Long awaited reforms to ISAs were finally delivered by the Chancellor in this Budget.

From 6 April 2027, the annual ISA cash limit will fall to just £12,000, but an overall annual ISA limit of £20,000 will be retained.

This means that the remaining £8,000 allowance will need to be invested in stocks and shares ISA to benefit from the tax-free amount.

In a big mix up to both pensions and tax planning, the Chancellor announced that employer and employee National Insurance contributions will be charged on pension contributions above £2,000 per annum made via salary sacrifice.

This change will take effect from 6 April 2029, closing a window that many high earners have used to minimise their Income Tax liabilities, whilst increasing their lifetime pension savings.

Final thoughts

The Autumn Budget delivered on the expected tax hikes, but the axe didn’t fall in all of the places that had been speculated about.

This was a Budget that focused more on personal taxation, rather than corporate taxation, but many of the measures will affect the employees and leadership of SMEs across the UK.

Labour’s focus is clearly on reducing its deficit, whilst increasing spending in areas that reduce the impact of the cost of living. Whether it will achieve this careful balancing act is yet to be seen, but in the meantime for many of us it will mean paying more across a wide range of taxes.

Those people whose future plans have been affected as a result of this Budget must seek professional advice as soon as they can.

To read the full Autumn Budget document, please click here.