Entity Setup
Navigating the UK’s 2026-27 Business Rates and National Insurance Changes
Upcoming UK tax changes from Budget 2025 will affect businesses from April 2026—especially regarding business rates for property, employer NI contributions, and VAT grouping rules.
By NomadicTax Research Team • 5-8 min read • March 13, 2026
## Major Tax Changes Starting April 2026 / FY 2026-27 in the UK
From **6 April 2026**, multiple measures from Budget 2025 come into effect. Key ones include:
- **Business Rates Relief**: 750,000 retail, hospitality, and leisure (RHL) properties will benefit from permanently lower business rates multipliers. Specifically, properties under £500,000 rateable value will see reduced multipliers from April 1, 2026. ([gov.uk](https://www.gov.uk/government/news/budget-2025-fact-sheet-tax-support-for-businesses?utm_source=openai))
- **Employers’ National Insurance Contributions (NICs)**: Employer NIC rate rises by **1.2 percentage points** from 6 April 2025; the Secondary Threshold (where liability begins) drops from £9,100 to £5,000. Budgeted in 2025 but critical for FY 2026-27 planning. ([gov.uk](https://www.gov.uk/government/news/chancellor-chooses-a-budget-to-rebuild-britain?utm_source=openai))
- **Mandatory Tax Adviser Registration**: From **May 2026**, advisers interacting with HMRC must register and meet minimum standards. ([gov.uk](https://www.gov.uk/government/publications/budget-2025-overview-of-tax-legislation-and-rates-ootlar/budget-2025-overview-of-tax-legislation-and-rates-ootlar?utm_source=openai))
- **Aligning PAYE Notifications with Overseas Workday Relief**: Employers submitting PAYE forms for employees eligible for Overseas Workday Relief will be limited to excluding no more than **30% of income** under income excluded claims. Effective from 6 April 2026. ([gov.uk](https://www.gov.uk/government/publications/budget-2025-overview-of-tax-legislation-and-rates-ootlar/budget-2025-overview-of-tax-legislation-and-rates-ootlar?utm_source=openai))
## What Entity Owners & Board Executives Should Do Now
- **Audit holdings and costs**: If you own RHL properties under or over £500,000 RV, assess relief eligibility and update expense forecasts.
- **Review payroll systems**: The changing employer NIC thresholds and rates may affect employee classifications, payroll system settings, and net salary calculations.
- **Compliance in adviser relationships**: Tax advisers not already registered should initiate the process; businesses hiring or relying on advisers should verify their compliance.
- **Communicate overseas work policies**: HR and payroll teams supporting employees who travel or work abroad need to adjust PAYE processes and documentation to conform to the 30% maximum exclusion.
## Example Scenario
A medium-size hospitality firm with a leased RHL property worth £450,000 will benefit from the lower business rates multiplier from 2026-27, reducing annual property tax costs. At the same time, by employing veterans, it could benefit from extended employer NIC relief. But if the business uses tax advisers who are not registered, it may face compliance risk when claiming reliefs or filing returns.
## Implications for Budgeting & Strategy
- Capital expenditure and property acquisitions should factor in new reliefs.
- Staffing and payroll costs will rise for many businesses with falling employer NIC threshold—plan headcount and salary bands accordingly.
- Risk of penalties for non-compliant advisers could affect liability exposure and transaction structuring.
## Summary
Budget 2025 contains pivotal changes coming into force in April 2026 that impact **cash flows, property costs, and compliance obligations**. Businesses should review positions now to adapt strategy, operations, and legal structures well ahead of deadline.