Our Business Analyst and Bookkeeping team attended the Scrutton Bland Budget Breakfast on Thursday 29 October, where they heard about the key announcements from the 2026 Budget and the potential implications for individuals, landlords, employers and businesses.

While many of the measures will not take effect immediately, several important changes are expected between 2027 and 2029. Here are some of the main points highlighted by the team.

Personal tax and business mileage

From April 2027, the tax-free allowance for small amounts of trading income is expected to increase from £1,000 to £3,000.

Business mileage rates are also due to rise from April 2027. The proposed rates are 55p per mile for the first 10,000 business miles and 35p per mile thereafter. Businesses and individuals who regularly claim mileage expenses should review their processes ahead of the change.

Changes affecting property owners and landlords

Landlords could face higher tax bills from April 2027, with property income expected to become subject to increased tax rates.

Those with rental properties should consider how the changes could affect future income, cash flow and investment decisions. Taking advice in advance may help landlords understand the likely impact and plan accordingly.

Inheritance Tax and succession planning

From April 2027, most unused pension funds are expected to become subject to Inheritance Tax. This could increase the taxable value of some estates and may affect existing succession and estate-planning arrangements.

Individuals with significant pension savings should consider reviewing their plans with an appropriately qualified tax or financial adviser before the new rules take effect.

What businesses and employers need to know

The process for claiming Research and Development tax relief is expected to become simpler from April 2027.

Employers will also need to prepare for changes to the way employee benefits are reported and taxed through payroll. Businesses should review their payroll systems and benefits processes in good time to ensure that they are ready for the new requirements.

Other changes highlighted at the event included:

• A proposed reduction in the Business Asset Disposal Relief lifetime limit from £1 million to £500,000 from April 2027.
• The continued availability of full expensing and the £1 million Annual Investment Allowance for most qualifying businesses.
• Capital Allowances – A reduction in the writing-down allowance from 14% to 12% from April 2027.
• Capital Allowances – An increase in the First Year Allowance from 40% to 50% from January 2027.

These changes could influence the timing of business disposals, investment decisions and capital expenditure, making early planning particularly important.

VAT and duty updates

Several VAT and duty measures were also discussed, including:

• An extension to the temporary duty reduction on red diesel.
• The suspension of tariffs on fertiliser.
• The planned introduction of VAT e-invoicing and changes relating to Direct Debit mandates from April 2029.
• Proposals allowing local mayors to decide whether to introduce a tourist tax for hotels, holiday lets, bed and breakfasts, and guesthouses.

Businesses operating in agriculture, tourism, hospitality or property should monitor the detail as these measures develop.

Planning ahead

For most individuals and businesses, the Budget does not require immediate action. However, the number of changes expected between 2027 and 2029 means that it would be unwise to ignore them until the last minute.

Reviewing tax, payroll, investment and succession arrangements early will give businesses and individuals more time to understand the potential impact and make informed decisions.