On 28 October 2026, Chancellor John Healey delivered his first Autumn Budget, outlining a series of tax changes and measures aimed at easing financial pressures on households and businesses. We've highlighted some of the key announcements below and if you have any questions, please get in touch with the SJC team. I AM EMPLOYED Income Tax rates on earnings are unchanged but your Personal Allowance stays at £12,570 in 2027-28, so pay rises bring more of your income into tax.

Purchasing a vehicle for your business can be a significant investment, but can you reclaim the VAT on the cost? For many businesses, the answer is no. HMRC applies strict rules to VAT recovery on cars, particularly where a vehicle is available for private use. However, there are exceptions, and a recent tax tribunal ruling has highlighted circumstances in which businesses may be entitled to reclaim VAT. Understanding these rules before purchasing a vehicle could help your bu

HMRC has updated its guidance on UK VAT refunds for overseas businesses that form part of a VAT group, introducing changes designed to make the refund process fairer and more consistent. The update, outlined in Revenue & Customs Brief 10 (2026), clarifies how non-UK businesses should submit future VAT refund claims, introduces transitional arrangements and provides an opportunity to have certain previously rejected claims reconsidered. For international businesses that incur

Businesses operating in England's tourism and hospitality sectors could face new tax obligations under government plans to introduce an overnight visitor levy, commonly referred to as a 'tourist tax'. The proposals would give mayors and strategic authorities across England the power to charge a levy on overnight accommodation, affecting both domestic and international visitors. While the changes could generate additional revenue for local areas, they may also introduce new ad

Company directors may need to provide additional information when completing their Self Assessment tax returns for the 2025/26 tax year, following the introduction of new HMRC reporting requirements. The changes affect directors of close companies, including many small and owner-managed businesses across the UK. With additional disclosures now mandatory for affected directors, it's important to understand what information HMRC requires and how to ensure your tax return is com

Small manufacturing businesses across Britain could benefit from a new government scheme designed to reduce electricity costs and improve industrial competitiveness. The British Industrial Competitiveness Scheme (BICS) opened for applications on 1 October 2026, offering eligible manufacturers electricity cost reductions of up to 25%. More than 10,000 businesses are thought to qualify for the scheme, which aims to support manufacturers facing high energy costs and increasing p

The Department for Education (DfE) has published several important updates for academy trusts and school leaders, covering funding allocations, financial reporting, staff development and upcoming deadlines. We've summarised the key announcements from the DfE updates published on 23 September, 30 September and 7 October 2026 to help academy trusts stay informed and meet their responsibilities. DfE Update – 7 October 2026 Budget Forecast Return Data Now Available The latest 202

Cryptocurrency has become an increasingly popular investment, with Bitcoin, Ethereum and other digital assets now forming part of many individuals' investment portfolios. However, despite their growing popularity, there is still confusion surrounding how cryptoassets are taxed in the UK. One common misconception is that cryptocurrency transactions are anonymous or fall outside the scope of HMRC. In reality, cryptoassets are subject to UK tax rules, and failing to declare taxa

HMRC is reminding contractors of the importance of submitting accurate Construction Industry Scheme (CIS) monthly returns, following the identification of several common reporting errors. During October 2026, HMRC is expected to contact contractors where potential mistakes have been identified, asking them to review their submissions and ensure the correct information has been reported. For businesses operating within the construction industry, understanding these common erro

Significant changes to the Apprenticeship Levy came into effect on 1 August 2026, introducing greater flexibility in how businesses can fund employee training, alongside important changes to funding rules. The introduction of the Growth and Skills Levy provides employers with more opportunities to invest in workforce development, including shorter, targeted training programmes. However, changes to government contributions and funding expiry periods mean businesses will need t

For many businesses, growth is measured by one thing: sales. But increasing turnover doesn’t necessarily mean increasing profit. Without a clear understanding of margins, costs and where your strongest returns are coming from, a business can grow its revenue while making relatively little improvement to its bottom line. A structured 12-month profit improvement plan can help you look beyond sales targets, identify where the biggest opportunities lie and turn financial insight

Childcare can be a significant expense for working families, particularly during the school holidays. HMRC is reminding parents that the Tax-Free Childcare scheme could help reduce those costs. The scheme can be used towards a range of approved childcare, including nurseries, childminders, breakfast and after-school clubs, and holiday clubs. For employers, it's also worth being aware of the support available. Signposting employees towards schemes such as Tax-Free Childcare ca

The government has published a one-year progress update on its Small Business Plan, setting out the measures introduced to help small and medium-sized businesses start, grow and access the support they need. From tackling late payments to improving access to finance, the update covers several areas that could have a practical impact on SMEs. Here's what business owners need to know. Tougher action on late payments Late payments remain a major challenge for small businesses, p

HMRC is contacting some self-employed people after identifying potential gaps in their National Insurance (NI) records which could affect their future State Pension. The issue relates to some individuals who were self-employed between 2015 and early 2024, with HMRC estimating that as many as 800,000 taxpayers could potentially be affected. If you receive a letter from HMRC, it's important not to ignore it. However, receiving one doesn't necessarily mean you need to make addit

The first quarterly deadline under Making Tax Digital (MTD) for Income Tax has now passed, giving us an early indication of how taxpayers are adapting to the new system. Since 6 April 2026, sole traders and landlords with qualifying income of more than £50,000 have been required to keep digital records and submit quarterly updates to HMRC using compatible software. The first deadline, covering the opening three months of the 2026/27 tax year, was 7 August 2026. HMRC has confi

The Department for Education (DfE) has published a series of updates for academy trusts, covering important developments in funding, financial reporting and administration. We've brought together some of the key points from the DfE updates published on 19 August, 2 September and 9 September 2026. 16 to 19 in-year growth funding The DfE has published details of its 16 to 19 exceptional in-year growth policy for the 2026/27 academic year. Under the policy, the government has co

Businesses and individuals using Companies House services need to be aware of further changes to the way they access and use its online services. The changes include the introduction of GOV.UK One Login for new users and a new requirement for objections to company strike-offs to be submitted online from 1 December 2026. If you regularly access Companies House on behalf of your own business or other companies, it's worth making sure you're prepared. Companies House moves towar

A major change to the way employers report and tax certain benefits in kind (BiKs) is coming from 6 April 2027. Rather than waiting until after the end of the tax year to report affected benefits through the P11D process, employers will need to report them through payroll in real time. The new rules are being introduced in phases, but employers should start preparing now to make sure their payroll systems, processes and employees are ready for the change. Which benefits will

With the new academic year underway, academy trust finance teams will be turning their attention to the preparation and audit of their financial statements for the year ended 31 August 2026. The Department for Education's Academies Accounts Direction (AAD) 2025 to 2026 sets out the requirements academy trusts and their auditors must follow when preparing this year's accounts. There are several changes trusts should be aware of, covering areas including the Trustees' Report, s

Andy Burnham became Prime Minister on 20 July 2026, following Sir Keir Starmer’s resignation and Mr Burnham’s election as Labour leader. Having returned to Parliament as MP for Makerfield in June, the former Mayor of Greater Manchester has moved quickly to establish the priorities of his new government. While many of the longer-term tax and spending decisions will become clearer at future fiscal events, the first few weeks of the Burnham government have already provided some