Running your own business means keeping an eye on the money coming in, the costs going out and the tax bill ahead. The Autumn Budget brings a mix of welcome reliefs and changes worth building into your plans.

For many sole traders, the most immediate priority remains Making Tax Digital for Income Tax. Alongside that, a larger trading allowance and changes to mileage rates could affect what you claim.

Making Tax Digital is getting closer
Sole traders and landlords with qualifying income over £30,000 in 2025/26 are due to join Making Tax Digital for Income Tax from 6 April 2027. The test looks at combined gross qualifying income from self-employment and property, before expenses, rather than profit.

That makes it important to look at the whole picture. Someone with £22,000 of self-employment turnover and £12,000 of gross rental income would cross the £30,000 threshold, subject to the applicable rules and exemptions.
If you are joining in April 2027, late submission penalty points will not apply to your 2027/28 quarterly updates. You must still submit those updates before filing your tax return. This is time to get comfortable with the process, rather than a reason to put off preparing.

We are holding a webinar and seminar to help clients get ready. If you have received an invitation, please RSVP. If you are unsure whether this applies to you, get in touch and we can check.

A bigger allowance for small trading activities
From 6 April 2027, the trading allowance is set to rise from £1,000 to £3,000. This could be useful if you freelance occasionally, sell products alongside your main job or are testing a new business idea.

The allowance relates to gross trading income, not profit, and eligibility conditions apply. Income covered by the allowance may not need to be reported, but you may still need a tax return for other reasons. If receipts exceed £3,000, compare claiming the allowance with deducting actual allowable costs. You cannot claim both against the same income.

Mileage and investment costs
For qualifying business journeys in your own car or van, the 55p rate for the first 10,000 miles, effective from 6 April 2026, is being made permanent. The rate above 10,000 business miles is set to increase from 25p to 35p from 6 April 2027. Keep a record of the journey, purpose and distance, and check that the mileage method is available to you.

For qualifying capital expenditure, the main rate first-year allowance is due to increase from 40% to 50% from 1 January 2027. The main writing down allowance will reduce from 14% to 12% from 6 April 2027 for Income Tax. The effect depends on the asset and the other reliefs available, so discuss a planned purchase with us before assuming these rates apply.

Changes to build into your longer term plans
From April 2029, people who already make Self Assessment payments on account are due to move to smaller, more regular payments. The detailed schedule will follow consultation. VAT-registered businesses will also need a Direct Debit instruction for VAT liabilities from April 2029, with other payment methods available before a specified cut-off date.

Eligible self-employed fathers, partners and adopters in Great Britain are also due to gain access to a parental allowance from April 2029. We will share more on eligibility as the arrangements develop.

If you run a qualifying retail, hospitality or leisure business in England, check the separate business rates support too. From April 2027, the thresholds are set to rise to £18,000 for full Small Business Rates Relief and £21,000 for tapered relief. Other qualifying properties will receive a two-year real-terms freeze, rather than a guarantee of an unchanged bill.

Let us help you work out what matters

Your next step is to check your MTD position, keep your records up to date and review the expenses and reliefs you claim. With more HMRC compliance staff planned, good records will remain essential.

At Coalesco, we can help you turn the announcements into a practical plan for your business. Contact us through coalesco.co.uk to arrange a friendly chat, or ask about our MTD webinar and seminar.

This article reflects announcements made on 28 October 2026. Some measures require legislation or further detail. Tax treatment depends on your circumstances.