Most of what changes for business owners in 2027 was set out before this year's Budget: the first big step in the Employment Rights Act 2025 in January, and a heavy April for tax. Here is each confirmed change, by month, with who it affects and where to read the rule.
January
| Date | Change | Who it affects |
|---|---|---|
| 1 January | Unfair dismissal rights after six months. Staff can claim unfair dismissal after six months' service, down from two years, where their employment ends on or after 1 January 2027. Someone hired in mid 2026 qualifies straight away. Source | Every employer |
| 1 January | No cap on unfair dismissal compensation. The limit on the compensatory award for unfair dismissal is removed at the same time. Source | Every employer |
| January | Fire and rehire protections. Dismissing someone to force through a change to those terms becomes automatically unfair, with narrow exceptions. Source | Employers changing pay, hours, pensions, shifts or leave |
| 1 January | Telling staff they can join a trade union. New starters must be told in writing from day one. Existing staff must be told by 5 April 2027. Source | Every employer |
| 1 January | First-year allowance on plant and machinery rises to 50%. Spending on main rate plant and machinery on or after 1 January 2027 gets a 50% first-year allowance. From April the main writing-down allowance falls to 12%. Source | Companies and sole traders buying equipment |
| 1 January | Carbon charge on some imports. The UK Carbon Border Adjustment Mechanism charges for the carbon in those imported goods. Source | Importers of iron, steel, aluminium, cement, fertiliser and similar goods |
March
| Date | Change | Who it affects |
|---|---|---|
| 31 March | Recycling rules reach the smallest firms. Dry recyclables, food waste and general waste must be separated for collection. Source | Businesses in England with fewer than 10 full-time equivalent staff |
| 31 March | Full first-year allowance on electric cars ends. The 100% first-year allowance runs to 31 March 2027 for Corporation Tax and 5 April 2027 for Income Tax. Source | Companies buying electric cars or chargepoints |
April
| Date | Change | Who it affects |
|---|---|---|
| 6 April | Making Tax Digital for income over £30,000. Those with qualifying income over £30,000 in 2025 to 2026 must keep digital records and send quarterly updates through software. Over £20,000 follows in April 2028. Source | Sole traders and landlords, including owners who let property personally |
| 6 April | Points-based penalties for late tax returns. Late filing earns points; at four points a £200 penalty applies for each missed deadline. Source | Everyone who files a Self Assessment return |
| 1 April | Higher penalties for paying VAT and Self Assessment late. The penalties at day 15 and day 30 rise from 3% to 4% of the tax owed, and from day 31 to 10% a year. Source | VAT-registered companies and Self Assessment taxpayers |
| 6 April | Company cars and medical cover reported through payroll. Tax and Class 1A National Insurance on these benefits go through payroll instead of a P11D. Most other benefits follow in April 2028. Source | Employers providing cars, fuel, vans or private medical cover |
| 6 April | Tax on savings interest up four points. Savings rates become 24%, 44% and 49%: two points announced in 2025 and two more in the Budget on 28 October 2026. Source | Owners and staff with taxable interest outside an ISA |
| 6 April | Separate, higher rates on property income. Property income is taxed at 24%, 44% and 49% after a further two points in the Budget on 28 October 2026. The policy costings say relief for finance costs stays aligned to the property basic rate. Source | Owners who hold let property personally, outside Scotland |
| 6 April | Personal Allowance set against salary first. The Personal Allowance is used against employment, trading or pension income before savings, property income and dividends. Source | Owners with a mix of salary, dividends, savings and rent |
| 6 April | Income tax thresholds stay frozen. The Personal Allowance stays at £12,570 and higher rate tax still starts at £50,270 for 2027 to 2028. Source | Every owner and employee |
| 6 April | Unused pensions count for inheritance tax. For deaths on or after 6 April 2027, most unused pension funds and death benefits count as part of the estate. Death in service benefits are left out, and the spouse exemption still applies. Source | Owners with a SIPP or other pension, and their families |
| 6 April | Plan 2 student loan threshold frozen. The threshold stays at £29,385 for three years, so deductions start at a lower real level of pay. Source | Employers running payroll |
| 6 April | Company car tax on electric cars rises. The taxable percentage for zero-emission cars goes from 4% to 5%, and low-emission hybrids rise too. Source | Directors and staff with electric company cars |
| 6 April | EMI options no longer notified to HMRC. Options granted on or after 6 April 2027 are reported in the end-of-year return instead of being notified separately. Employees also get 180 days instead of 90 to exercise after a disqualifying event, and companies moving to an Employee Ownership Trust keep the scheme. Source | Companies granting Enterprise Management Incentive options |
| 6 April | Company Share Option Plans become EMI2. The limit on options each employee can hold doubles to £120,000, no longer counts against the EMI limit, and options can be exercised for 15 years. Source | Companies giving staff share options |
| 6 April | Business Asset Disposal Relief limit halves to £500,000. Qualifying gains are still taxed at 18%, but only up to £500,000 over a lifetime instead of £1,000,000, for disposals made from 6 April 2027. Source | Owners selling or closing a business |
| 6 April | A new Founders' Relief at 10%. A 10% rate of Capital Gains Tax on up to £10,000,000 of lifetime gains, for those who meet conditions still out for consultation. Source | Founders and early investors in high-growth, innovative companies |
| 6 April | Trading Allowance triples to £3,000. Up to £3,000 a year of trading or miscellaneous income is tax-free, up from £1,000. Source | Individuals with small trading or miscellaneous income |
| 6 April | Tax-free mileage above 10,000 miles rises to 35p. The 55p rate for the first 10,000 business miles in a car or van is made permanent, and the rate above that rises from 25p to 35p. Source | Employers paying mileage, and the self-employed |
| 6 April | No penalty points for late first Making Tax Digital updates. Late submission of the first four quarterly updates in 2027 to 2028 won't earn penalty points. Source | Sole traders and landlords joining in April 2027 |
| 1 April | National Living Wage rises to £13.21. Up 3.9% for workers aged 21 and over. The rate for 18 to 20 year olds rises to £11.27, and for 16 and 17 year olds and eligible apprentices to £8.31. Source | Every employer |
| 1 April | Small Business Rate Relief for shops, pubs and restaurants widens. The rateable value for 100% relief rises from £12,000 to £18,000, and for tapered relief from £15,000 to £21,000. Bills for these properties are also capped by inflation for two years, and relief for pubs, social clubs and live music venues rises to 35%. Source | Retail, hospitality and leisure businesses in England |
| 1 April | Main writing-down allowance falls to 12%. For main rate plant and machinery, from 1 April 2027 for Corporation Tax and 6 April 2027 for Income Tax. Source | Companies, and sole traders from 6 April |
| 1 April | Small business rates help from 2023 runs for another year. The Budget extends Supporting Small Business relief for one more year from 1 April 2027 for those who had it in 2023. Source | Small ratepayers still getting the 2023 Supporting Small Business scheme |
| April | Unpaid bereavement leave from day one. Up to two weeks' unpaid leave on the death of a close relative or a pregnancy loss before 24 weeks. The regulations haven't been laid yet. Source | Every employer |
July
| Date | Change | Who it affects |
|---|---|---|
| 1 July | Fuel duty goes back up. The Budget on 28 October 2026 extends the temporary 5p a litre cut to 30 June 2027. On 1 July 2027, fuel duty returns to its level before the cut and rises with RPI inflation. Source | Businesses running petrol or diesel vehicles |
October and the autumn
| Date | Change | Who it affects |
|---|---|---|
| October | Online marketplaces collect VAT on UK sellers' sales. Marketplaces become responsible for VAT on sales by UK VAT-registered businesses and other UK businesses above £90,000 a year of sales through that marketplace. Source | UK businesses selling through online marketplaces |
| 1 October | Deposit return scheme for drinks. Customers pay a refundable deposit at the till. Most shops selling these drinks must take returns unless they're exempt. Source | Shops, cafés, pubs and anyone selling drinks in cans or plastic bottles |
| Autumn | Flexible working requests harder to refuse. Employers must consult before turning down a request and show the refusal is reasonable on one of the eight grounds in law. Source | Every employer |
Some time in 2027
| Date | Change | Who it affects |
|---|---|---|
| Late 2027 | Securities Transfer Tax replaces Stamp Duty on shares. One tax replaces Stamp Duty and Stamp Duty Reserve Tax. The Budget document gives no exact date or rate. Source | Anyone buying shares, including in a private company |
| 2027 | Collective redundancy threshold changes. The rule on when collective consultation applies is being widened beyond 20 at one site. Source | Employers making 20 or more redundancies |
| 2027 | Limits on non-disclosure agreements. Regulations to stop agreements being used to silence those complaints. Source | Employers settling harassment or discrimination complaints |
| 2027 | Further trade union measures. Electronic and workplace ballots for recognition and stronger protection against blacklisting. Source | Employers facing a recognition claim |
| 2027 | Equality action plans. Published plans on the gender pay gap and support through the menopause. Source | Employers with 250 or more staff |
Still to be confirmed
These are expected in 2027 but have no confirmed figure or date yet: statutory pay rates, business rates multipliers for 2027 to 2028, the right to guaranteed hours and pay for shifts cancelled at short notice, stronger dismissal protection for pregnant women and new mothers, rules for umbrella companies, limits on late payment terms between large and small firms, and the duties on venues under Martyn's Law. The details of Founders' Relief are out for consultation. Our guide to what it costs to employ someone has the cost of a worker on the April 2027 National Living Wage.
Moved out of 2027
Companies House's changes to accounts filing, including filing only through software and the end of abridged accounts, now start on 1 April 2028. Mandatory payrolling of most other benefits follows in April 2028, and e-invoicing for VAT in April 2029.
After the Budget on 28 October 2026, the cash ISA limit stays at £20,000 instead of falling to £12,000 for savers under 65, and fuel duty now goes back up on 1 July rather than 1 March (see July above). The rules on how companies pay out to shareholders, including buybacks, are being rewritten from April 2028. Our list of every Budget 2026 change has the rest.
How we checked
Each change is checked against a GOV.UK or legislation.gov.uk page, linked in its row, and was rechecked after the Budget on 28 October 2026. Rates and dates for Scotland and Wales can differ; this covers England. It's general guidance, not advice for your business, so take advice before acting on any of it.