The chancellor has delivered the Autumn Budget, outlining tax changes and spending plans that will shape the next few years for business owners. While much of the announcement confirmed earlier leaks and forecasts, there are several measures that directly affect small and medium-sized enterprises (SMEs) and family-run firms. Below is a clear breakdown of the changes most likely to matter to you, along with what they could mean in practice. Wage rises every business needs to prepare for From April 2026 , the legal minimum wage for over-21s will rise to £12.71 per hour , with the 18–20 rate increasing to £10.85 . For many businesses with close-knit teams, wage costs form a significant part of everyday spending. These increases will have a noticeable impact on payroll budgets, especially in sectors such as retail, hospitality, trades, personal services, and care. What to do now: Review staffing levels and rotas Forecast how changes affect your cash flow from April 2026 onwards Consider revisiting pricing, service packages, or operational efficiencies The Budget also confirmed that employer National Insurance thresholds will remain frozen until 2031 , which means employer NI costs will continue to rise as wages increase. Tax rises through frozen thresholds Income tax thresholds and National Insurance thresholds for employees are now frozen until 2031 . As wages rise over time, more individuals will move into higher tax bands. For employers, this means: Higher payroll tax exposure for staff Greater importance on understanding the true cost of salary reviews A stronger need for accurate forecasting For owner-managers drawing a mix of salary and dividends, planning around these freezes will be essential. Dividend, savings, and property income tax increases The Budget confirmed that: Dividend tax rates will rise by 2 percentage points from April 2026 Income tax on rental and savings income will rise by 2 percentage points from April 2027 This matters for: Directors who pay themselves partly through dividends Owners with rental properties tied to their business or family wealth Anyone relying on investment income as part of their household finances These increases make tax-efficient profit extraction more important than ever. Salary sacrifice changes affecting employer benefits From April 2029 , the amount an employee can sacrifice from their salary for pension contributions free of National Insurance will be capped at £2,000 per year . This affects businesses that use salary sacrifice as a benefit for directors or key staff. You may need to revisit your remuneration strategy ahead of 2029. Rising costs for importing supplies The tax exemption for overseas packages under £135 will be scrapped from 2029. Many SMEs rely on lower-value imports for: Packaging Tools and equipment Replacement parts Online-sourced stock Removing the exemption means these items will become more expensive. Reviewing your supply chain and local alternatives may help control costs. Alcohol, tobacco, and sugary drink duty rises From 1 February 2026 , alcohol duty will increase in line with RPI inflation. This will affect businesses selling alcoholic drinks as part of their offer, such as restaurants, bars, cafés, and event venues. From January 2028 , the sugar tax will be extended to pre-packaged milkshakes and lattes . If your business sells bottled or canned sweetened drinks, suppliers are likely to pass on the cost. Fuel duty freeze – a small relief for business travel The current 5p cut in fuel duty has been extended until September 2026 . While modest, this does give some stability for businesses that rely on: Deliveries Site visits Mobile services Tradespeople travelling between jobs However, a new mileage-based tax for electric and plug-in hybrid vehicles will begin in April 2028 . If your business is moving towards an electric fleet, factor this into long-term planning. Support through apprenticeships and training There is positive news for employers developing young talent. Apprenticeship training for under-25s will be free for SMEs , making it more accessible for smaller firms to bring in and train new staff. For businesses aiming to build long-term capability, this could be a valuable opportunity. Changes affecting household budgets and customer spending While many Budget measures target business taxation, everyday households will also feel the impact of: Frozen income tax thresholds to 2031 The minimum wage rise State pension increase of 4.8% Changes to child-related benefits What this Budget means overall The Autumn Budget brings a continued mix of rising wage costs, increasing tax pressure, and a handful of supportive measures for business growth. For you, the most important shifts will likely be: Higher payroll costs from 2026 Higher employer NI costs each year through to 2031 Tax changes affecting directors’ pay and family investment income More expensive low-value imports Duty rises that affect small retailers and hospitality Opportunities through apprenticeship support Now is the right time to review forecasts, revisit your pricing and profit structure, and check you’re making the most of the reliefs and allowances available. How we can help We specialise in supporting family-run and owner-managed businesses. We can help you understand tax changes early and build plans that protect profit and cash flow. To work with us, call our team on 01709 589 439 or book a discovery call with Frances . We'd love to hear from you.

For small and medium-sized business owners, the rise of AI in tax advice and self-assessment may look like a tempting shortcut. In fact, according to a recent survey by Taxfix , 59% of UK taxpayers say they will use AI tools to help them complete their self-assessment ahead of the 31 January deadline. The appeal is obvious: speed, simplicity, and the promise of cutting out the middleman. But that convenience often comes at the expense of accuracy and context. That leads us to why you should not rely on it for full tax advice, especially in the kinds of scenarios we commonly deal with. Why you should avoid relying solely on AI for tax advice 1. Tax is inherently complex and context-dependent No two businesses are the same. You may have a mix of income streams, directors’ salaries, dividends, or property income to consider. A generic AI tool may provide plausible general statements, but it cannot dig into your business structure, uncover hidden reliefs, or spot risks that could make a real difference to your bottom line. 2. AI can hallucinate or misapply rules AI tools generate responses based on patterns, not verified UK tax law. There are documented cases where AI has “invented” legal examples or misapplied regulations. What looks accurate on screen may in fact be misleading or out of date, leaving you exposed to penalties or missed opportunities. 3. AI advice tends to be generic, not bespoke AI tools are good at explaining standardised concepts, such as what counts as an allowable expense or how to complete a tax return. But every business is different. A human adviser can ask you: “Are you taking dividends at the right time? Should you consider company pension contributions? How can you manage your VAT more efficiently?” and then tailor the advice to your goals. AI cannot replicate that level of understanding. 4. Regulatory and compliance risk remains high Mistakes in tax returns expose you to HMRC queries, penalties, and unnecessary stress. Because AI lacks accountability and often overlooks nuance such as timing of payments, capital allowances, or sector-specific reliefs, relying on it increases your risk. A qualified accountant ensures compliance and protects you from costly errors. 5. The value of human oversight and advice adds much more Beyond the filing itself, a human tax adviser brings insight and strategy. Long-term planning, showing you how to structure your finances for stability and growth. Sector-specific knowledge, identifying the allowances and opportunities relevant to your business. Relationship-based support, understanding your goals year after year and guiding you through change. Practical experience, knowing what HMRC focuses on and helping you prepare. What should you do as a business owner? Here is a practical framework you can adopt now: Use AI tools only for simple administrative tasks such as gathering receipts, checking deadlines, or summarising basic information. Never treat AI output as professional advice. Always have your accountant review anything AI produces before acting on it. Discuss your situation with your accountant before using AI. Let them flag where bespoke advice is essential. Keep clear records of decisions and unusual transactions. Accountants can turn these into meaningful tax strategies. AI cannot. After filing, review the results and plan ahead with your accountant. Use AI for reminders, but rely on your adviser for context and accuracy. Why working with us makes sense At Navigate, we understand the challenges of managing cash flow, staying compliant, and building financial stability. We bring: Experience across multiple industries, knowing what matters most to business owners. Strategic insight, helping you save tax and plan for the future. Personal service, taking time to understand your goals and challenges. The right balance, using technology to support efficiency but applying human judgement where it matters. In summary AI is undoubtedly a useful tool in modern tax preparation. It is fast, accessible, and increasingly part of how people handle their finances. However, business tax is rarely simple. AI can miss key details, provide incomplete advice, or fail to tailor its recommendations to your business. That is where a human tax adviser adds real value. If you are considering using AI for your tax return, do so with the awareness that it should complement, not replace, professional advice. To work with us, call our team on 01709 589 439 or book a discovery call with Frances . We are always happy to help.