Autumn Budget 2026: What Sole Traders and Landlords Need to Know

Written by James Veal

The Autumn Budget 2026, delivered on 28 October, left headline Income Tax, National Insurance and VAT rates unchanged. However, it contains several changes that matter to sole traders and landlords from April 2027. Because Parliament still has to approve most of them, details may change.

Autumn Budget 2026: changes for sole traders

• Trading allowance: rises from £1,000 to £3,000 from 6 April 2027. For example, a sole trader with £2,500 of income could then use the allowance instead of tracking expenses. See what the trading allowance is, or read HMRC’s guidance on tax-free allowances on property and trading income.
• Mileage: the 55p rate for the first 10,000 business miles becomes permanent. In addition, the rate above 10,000 miles rises from 25p to 35p from 6 April 2027. See our mileage guide or the GOV.UK simplified expenses rules.
• Making Tax Digital: the dates do not change. The thresholds remain £30,000 from April 2027 and £20,000 from April 2028. See the £30,000 threshold guide.
• VAT registration threshold: stays at £90,000.

Autumn Budget 2026: changes for landlords

Reports say property income tax rates will rise to 24% / 44% / 49% from 6 April 2027 in England, Wales and Northern Ireland. That is a further 2 points on the rates announced in 2025. Therefore, landlords should review their 2027/28 cash flow now. For the detail, see our 2027 property tax changes guide.

Other Autumn Budget 2026 changes to know about

• Savings income tax rates rise by 2 points from April 2027.
• The Business Asset Disposal Relief lifetime limit falls from £1 million to £500,000 from 6 April 2027, while the rate stays at 18%.
• Reports say the main writing down allowance will fall to 12% and the first year allowance will rise to 50%.
• Payments on account will move to smaller, more regular instalments from April 2029, and a consultation will follow.
• Reports say Direct Debit mandates for VAT and PAYE will start from April 2029. See our Direct Debit consultation post.
• Dividend tax (10.75% / 35.75% / 39.35%), employer NI and corporation tax rates do not change. You can check the dividend rates on GOV.UK.

Overall, the Autumn Budget 2026 mostly affects the 2027/28 tax year, so you have time to prepare. Need help planning for April 2027? Get in touch.

This article provides general guidance only, based on Budget announcements that are not yet law. Check GOV.UK or speak to a qualified accountant about your own situation.