The Autumn Budget 2026, delivered on 28 October 2026, does not raise employer National Insurance or Corporation Tax. For employers the bigger changes are a higher National Living Wage from 1 April 2027, company cars and other benefits moving into payroll, and more generous first-year allowances on plant and machinery. Directors who extract profit as dividends see no rate change, but face a smaller Business Asset Disposal Relief limit when they sell. For every other measure, see our Autumn Budget 2026 summary.
What changed at a glance
| Measure | What happens | From |
|---|---|---|
| National Living Wage (21+) | £13.21 an hour, up 3.9% | 1 April 2027 |
| Employer NI and Employment Allowance | Unchanged: 15% and £10,500 | 2027-28 |
| Main-rate first-year allowance | 40% to 50% | 1 January 2027 |
| Main-pool writing-down allowance | 14% to 12% | 1 April 2027 (companies) |
| Payrolling of company cars, vans, fuel and medical benefits | Mandatory | 6 April 2027 |
| EMI2 (formerly CSOP) option limit | £60,000 to £120,000 | 6 April 2027 |
| Corporation Tax | Unchanged: 25% main, 19% small profits | FY 2027 |
| BADR lifetime limit | £1 million to £500,000 | 6 April 2027 |
| NICs relief on salary-sacrificed pensions | Capped at £2,000 a year (Budget 2025, unchanged) | 6 April 2029 |
Pay: the minimum wage rises 3.9%
The government accepted the Low Pay Commission’s recommendations in full. From 1 April 2027:
| Age band | Hourly rate |
|---|---|
| 21 and over (National Living Wage) | £13.21 |
| 18 to 20 | £11.27 |
| 16 to 17 | £8.31 |
| Apprentices | £8.31 |
The accommodation offset rises to £11.53 a day. See minimum wage rates.
Employer National Insurance: unchanged
HMRC’s 2027-28 rates table keeps employer Class 1 NI at 15% above the Secondary Threshold, and the Employment Allowance at £10,500 per eligible employer. NI thresholds other than the Lower Earnings Limit stay frozen until the 2030 to 2031 tax year. The employer NI calculator shows the cost of each employee.
The Budget 2025 cap on salary sacrifice still applies: from 6 April 2029, only the first £2,000 a year of an employee’s salary-sacrificed pension contributions is free of employee and employer NI. The salary sacrifice calculator shows what that does to an arrangement.
Benefits in kind: payrolling and company car rates
From 6 April 2027 employers must report and tax company cars and vans, car and van fuel, and medical benefits through payroll in real time. All other benefits in kind follow from 6 April 2028, except employment-related loans and living accommodation an employer provides.
Company car tax rates for 2030-31 are now set: the zero-emission rate rises from 9% to 10%, cars emitting 1 to 50g CO2/km from 19% to 20%, and every other band by one point, up to a maximum of 40%. See the company car tax calculator.
Share options
The Company Share Option Plan is renamed EMI2, and the value of tax-advantaged options an employee can hold under it doubles from £60,000 to £120,000 from 6 April 2027.
Corporation Tax and capital allowances
The main rate of Corporation Tax stays 25% and the small profits rate 19%. Two capital allowance changes apply to plant and machinery:
- The main-rate first-year allowance rises from 40% to 50% for expenditure incurred on or after 1 January 2027.
- The main-pool writing-down allowance falls from 14% to 12% from 1 April 2027 for Corporation Tax (6 April 2027 for income tax).
Banks also pay a higher bank surcharge, 6% instead of 3%, from 1 January 2027 to 31 March 2028. The Corporation Tax calculator works out a company’s bill.
Company directors: dividends and selling up
Dividend tax is unchanged for 2027-28: 10.75%, 35.75% and 39.35%, with a £500 dividend allowance, so the salary and dividend mix that suits you now still works the same way. Use the director salary and dividend optimiser.
If you plan to sell your company, the Business Asset Disposal Relief lifetime limit falls from £1 million to £500,000 for disposals from 6 April 2027; the rate stays 18%. A new Founders’ Relief charges 10% on up to £10 million of lifetime gains for qualifying founders of high-growth, innovative companies from the same date. See the BADR calculator.
What to do now
- Budget for April 2027 pay rates across every age band, using minimum wage rates.
- Get payroll ready for benefits in kind from 6 April 2027: check that your payroll software can payroll company cars, vans, fuel and medical benefits.
- Time plant and machinery purchases with the 50% first-year allowance from 1 January 2027 in mind.
- If you are selling a company, model the April 2027 BADR limit in the BADR calculator and take advice.
Summary
For employers, Budget 2026 keeps employer NI at 15% and Corporation Tax at 25%, raises the National Living Wage to £13.21 from 1 April 2027, makes payrolling of company cars and other main benefits mandatory from 6 April 2027 and lifts the main-rate first-year allowance to 50% from 1 January 2027. Directors keep the same dividend rates, but the BADR lifetime limit halves to £500,000 for sales from 6 April 2027.