Budget 2026 Calculator
See your tax for 2027/28 before and after the Budget of 28th October 2026, line by line, for you and your business, whether you run a limited company or work as a sole trader. Free and indicative only, not advice and not to be relied upon.
Enter your figures
Your business, your staff, your mileage and anything you earn or sell personally.
See the Budget changes
We compare the tax for 2027/28 under the old rules and under the new Budget rules.
See every line
Tax for you and your business, plus staff pay and mileage, side by side.
Indicative only, not advice. This tool shows how the tax works out on the figures you enter, using the Budget announced on 28th October 2026. Some measures still need to pass into law. It must not be relied upon. Speak to us before making any decision.
Your business
Equipment, vans and cars
You
Selling something this year
Working it out
Indicative only, not advice, and not to be relied upon. See how it is worked out below.
Your business, 2027/28
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Tax line by line, 2027/28
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What the Budget changed
Also in the Budget documents
Rates used
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From the Budget documents on GOV.UK, 28th October 2026, and rules already in law for 2027/28.
Important: this calculator is indicative only. It is not advice and must not be relied upon. It uses the Budget announced on 28th October 2026, some of which may change before it becomes law, and assumes your figures stay the same. It covers the main taxes for owner managed companies and sole traders, and does not include pensions, student loans, business rates, the High Income Child Benefit Charge, Scottish or Welsh income tax rates, or reliefs not shown. Speak to us before you decide.
About the Budget 2026 calculator
This free calculator compares your tax for 2027/28 under the rules before the Budget of 28th October 2026 and under the Budget changes, line by line, for you and your business together.
It works for limited company owners and sole traders. It covers corporation tax, capital allowances, employer National Insurance and the Employment Allowance, staff on the National Living Wage, tax free mileage, the trading allowance, income tax on salary, profits, dividends, savings and rental profit, Class 4 National Insurance, and capital gains tax including Business Asset Disposal Relief.
Results are indicative only and are not advice. They use the Budget documents published on GOV.UK on 28th October 2026, some of which still need to pass into law, and must not be relied upon.
Budget rules the calculator uses
| Rule | 2027/28 |
|---|---|
| Capital allowances, writing down | 12% |
| Main rate first year allowance | 50% |
| Mileage over 10,000 miles | 35p a mile |
| Trading allowance | £3,000 |
| National Living Wage, 21 and over | £13.21 |
| Property income tax from April 2027 | 24%, 44%, 49% |
| Savings income tax from April 2027 | 24%, 44%, 49% |
| BADR lifetime limit from April 2027 | £500,000 |
| Dividend tax, unchanged | 10.75%, 35.75%, 39.35% |
| Corporation tax, unchanged | 19% to 25% |
| Employer NI, unchanged | 15% over £5,000 |
From the Budget documents on GOV.UK, 28th October 2026. England, Wales and Northern Ireland.
Questions people ask
What did Budget 2026 change for business owners?
From April 2027 the main capital allowance writing down rate falls to 12%, the first year allowance rises to 50%, tax free mileage above 10,000 miles rises to 35p, the trading allowance rises to £3,000, tax on property income and savings rises to 24%, 44% and 49%, and the Business Asset Disposal Relief lifetime limit halves to £500,000. Dividend tax, National Insurance and corporation tax rates are unchanged.
Does Budget 2026 change tax on dividends?
No. Dividend tax stays at 10.75%, 35.75% and 39.35% and the dividend allowance stays at £500.
What is the National Living Wage from April 2027?
It goes up 3.9% to £13.21 an hour for workers aged 21 and over from 1st April 2027, and to £11.27 for 18 to 20 year olds. The rate for 16 and 17 year olds and apprentices goes to £8.31.
What changes for capital allowances?
The main rate writing down allowance falls from 14% to 12% from April 2027, and the main rate first year allowance rises from 40% to 50% for spending from 1st January 2027. The £1 million Annual Investment Allowance and full expensing for companies stay, so most small businesses still get 100% relief on new equipment and vans.
What is the new mileage rate?
From 6th April 2027 the tax free rate for business mileage above 10,000 miles goes up from 25p to 35p a mile. The first 10,000 miles stay at 55p. It applies to employees and directors, and to the simplified rate for the self employed.
What is Founders' Relief?
A new capital gains tax relief at 10% on up to £10 million of lifetime gains, for qualifying share sales from 6th April 2027. It is aimed at founders of large, fast growing companies. As proposed it needs turnover of at least £10 million and at least 15 staff, and the rules are being consulted on until 30th November 2026.
What changes for share buybacks and reductions of capital?
From April 2028 the government is changing how money taken out of a company other than as salary or dividends is taxed, including share buybacks, reductions of capital and demergers. Draft rules are due in 2027.
How much more tax will I pay on a business sale?
Gains above the new £500,000 lifetime limit for Business Asset Disposal Relief are taxed at 24% instead of 18% from 6th April 2027. On a £1 million qualifying gain that is about £30,000 more.
Is this calculator advice?
No. It is indicative only, based on the Budget documents of 28th October 2026, and must not be relied upon. Speak to an accountant about your own situation.
Read our Budget 2026 summary for business owners, see all our calculators, or book a free call.
Indicative only, not advice. This calculator uses the Budget announced on 28th October 2026 and is not to be relied upon. Speak to us before making any decision.