Autumn Budget 2026: What Should Accountants Watch, and How Can You Support Clients?

Chancellor John Healey delivers his first Budget on Wednesday 28 October 2026, the first under Prime Minister Andy Burnham. Healey has said it will meet the government’s fiscal rules and give businesses and families more stability to plan. Most commentators expect tax rises of some kind, but the Treasury has confirmed very little. 

That leaves clients asking one question: “What does this mean for me?” This guide helps you answer it. It separates what is already law, what is credibly rumoured and what is speculation, and it suggests practical conversations to have with clients before and after Budget day. 

This article is general information, not tax advice. Nothing here is confirmed until the Chancellor’s announcement and the supporting documents are published. We will update it after the Budget. 

1. The political backdrop: what is off the table, and what isn’t

The government has kept Labour’s manifesto pledge not to raise the main rates of income tax, VAT or employee National Insurance. That narrows the options, and it is why advisers are looking closely at areas where clients with their own businesses, investments and property are more exposed. 

Thresholds are also frozen until April 2031. Frozen thresholds quietly pull more clients into higher bands as incomes rise, even with no change to headline rates. The Prime Minister has said he will look at the personal allowance before the Budget, so this one is worth watching. 

How to support clients: Start with the reassurance. Headline rates on income, VAT and employee NI are not expected to rise, so the real conversation is about specific reliefs, thresholds and asset taxes. Then identify clients who sit in the exposed groups below. 

2. Already announced: changes clients should plan for now

Several measures are already in motion. Clients often assume these are “Budget news” when they are in fact decisions that need planning regardless of what happens on 28 October. 

• Dividend tax. Rates rose in April 2026 (basic rate 10.75%, higher rate 35.75%). Because dividend tax sits outside the manifesto pledge, many commentators see it as a possible target for further increases. Any change would most likely apply from the next tax year rather than mid-year. 
• Property income. Higher property income tax rates are due from April 2027, which affects landlords whatever the Budget says. 
• Pensions and inheritance tax. Unused pension funds and certain death benefits are due to fall into the inheritance tax net from April 2027, and pension salary sacrifice will be capped for National Insurance purposes from April 2029. 
• Business and agricultural property relief. These reliefs were tightened in April 2026: full relief applies up to a threshold, with reduced relief above it. Check the current threshold and rules on GOV.UK before advising. 
• High Value Council Tax Surcharge. The so-called mansion tax applies from April 2028 to higher-value homes in England, and there are rumours the threshold could be lowered. 

How to support clients: Build a simple “already law” checklist for your client base. Review owner-managed businesses for salary and dividend strategy, landlords for 2027/28 cash flow, and wealthier clients for pension and estate planning. These conversations are valuable now and do not depend on Budget day. 

3. What might change on 28 October?

These are areas to watch, not predictions. Rumour is not a basis for advice, and some leaks are floated to test public reaction. 

Capital gains tax and business disposals 

There has been speculation about higher CGT rates or closer alignment with income tax. Some commentators have also suggested a more generous relief for entrepreneurs and investors, possibly paired with an increase elsewhere. Nothing has been proposed formally. 

How to support clients: If a client is planning to sell a business, shares or property, scenario-model the outcome under current rules and under a higher-rate scenario. Avoid rushing a sale for tax reasons alone. The commercial case still needs to stand up, and the legislation may not apply immediately. 

Inheritance tax, family businesses and farms 

The Prime Minister has reportedly been willing to “look again” at the curtailment of agricultural property relief, and there is wider speculation about business property relief. Direction is uncertain, and changes could loosen or tighten the rules. 

How to support clients: Identify family businesses and farming clients with succession plans in progress. Check wills, ownership structures and valuations, and agree a review point once the detail is published. Hold off recommending irreversible transfers based on press reports. 

Pensions 

Pension tax relief and the tax-free lump sum are the most discussed levers that have not yet been pulled, and providers are lobbying against any cut. Any change would affect high earners, business owners drawing on company pensions, and clients close to retirement. 

How to support clients: Encourage clients not to withdraw or restructure pensions in response to rumour. Review contribution patterns, particularly company contributions for directors, and record each client’s retirement timeline so you can advise quickly if rules change. 

Business rates and the cost of operating 

The government has promised wider business rates reform at the Budget, including changes to Small Business Rates Relief. A 20% cut for pubs, clubs and live music venues in England is confirmed from April 2027, and there are reports that larger warehouses could pay more to help fund relief elsewhere. 

Other areas often raised by business groups include employer National Insurance, the Employment Allowance, capital allowances and hiring support. Nothing has been confirmed in these areas. 

How to support clients: For hospitality, retail and logistics clients, check which rates category they are in and model the effect on cash flow. For growing employers, look at payroll and recruitment plans so you can show the impact of any change to employment costs quickly. 

Online sales and VAT compliance 

There is talk of tougher action on VAT evasion and an online sales levy. The scope and timing are unclear, and we have not seen confirmation of specific marketplace VAT rules. Ecommerce clients should expect more attention on how sales data is recorded and reported. 

How to support clients: Encourage ecommerce and marketplace sellers to reconcile sales regularly and keep clean digital records. That protects them whatever the final rules are. 

4. Making Tax Digital: the change that does not depend on the Budget

Making Tax Digital for Income Tax is being phased in for self-employed individuals and landlords, based on qualifying income. Your clients’ obligations depend on their income and the timetable, so check the current thresholds and dates on GOV.UK. 

The Budget is a natural moment to raise MTD with clients, because both involve getting records into shape. Clients with up-to-date digital records are better placed to model Budget changes and meet MTD requirements. 

How to support clients: Map your client list against MTD start dates, identify who still uses spreadsheets or paper, and agree a plan for software and quarterly updates. This protects clients from penalties and gives your practice a clear, recurring advisory service. 

5. Your practical plan

Before 28 October 

1. Segment your clients. Group them as owner-managed businesses, landlords, investors, family businesses and farms, ecommerce sellers, and those approaching retirement or sale. 
2. Send a short holding message. Explain what is known, what is rumoured and when you will follow up. Keep it calm and factual. 
3. Identify live transactions. Flag planned disposals, transfers, pension decisions and investments, and agree that nothing irreversible happens on rumour alone. 
4. Get records current. Reconciled bookkeeping and up-to-date management information make scenario modelling much faster. 

On and immediately after Budget day 

1. Read the primary sources first. The Budget documents, the OBR forecast and HMRC or Treasury guidance will show what is confirmed and from when. 
2. Triage by segment. Decide which client groups are affected and contact them first. 
3. Separate announcement from implementation. Many measures need legislation and have later start dates or transitional rules. 
4. Follow up with specifics. A short, tailored note saying “here is what this means for you and here is what we recommend next” is far more valuable than a generic summary. 

In the weeks that follow 

Use the Budget as the start of a planning cycle. Update forecasts, review year-end strategy, and book review meetings for clients whose circumstances have changed. 

6. How connected systems help you respond faster

Budget season tests how quickly a practice can answer “what does this mean for me?” across a whole client list. If bookkeeping, payroll, accounts, tax and client records sit in separate systems, the answer takes longer and the risk of error rises. 

Capium’s cloud accounting suite brings these workflows together, so your team can see the information it needs to model changes, prepare for MTD and respond to client questions from one place. That means less time reconciling data and more time advising. 

If you would like to see how this works for your practice, book a demo with Capium. 

The bottom line 

Until the Chancellor speaks on 28 October, much of what is written about the Budget is prediction. What is certain is that several important changes are already scheduled, that clients will want guidance, and that practices with organised client information and a clear communication plan will be best placed to give it.