Budget 2026: what it means for window cleaners and round owners
Fuel duty, mileage rates, the minimum wage and Making Tax Digital: the parts of Wednesday’s Budget that matter if you run a round.
The Chancellor delivered the Budget on Wednesday 28 October. Most of the headlines were about energy bills, housing and business rates, but a handful of changes affect anyone running a round: fuel, mileage, wages and Making Tax Digital. Here’s what changed and what it means for you.
Fuel duty: the 5p cut stays until the end of June
The temporary 5p a litre cut in fuel duty, in place since March 2022, now runs until 30 June 2027. On 1 July 2027 duty goes back to its full rate and rises with inflation (RPI) on the same day. The details are on GOV.UK.
What it means for you: the Budget doesn’t change what you pay at the pump for now, but expect fuel duty to go up by more than 5p a litre in July 2027. Bear it in mind when you set next year’s prices.
Mileage rates go up, and stay up
If you claim for your car or van at a flat rate per mile (simplified expenses) instead of its actual running costs, the 55p a mile for your first 10,000 business miles, brought in as a temporary rate this tax year, is now permanent. From 6 April 2027 the rate for every business mile over 10,000 goes up from 25p to 35p. See the Budget on GOV.UK.
What it means for you: if you drive more than 10,000 business miles a year, each mile over that is worth 10p more to claim from April 2027. A mileage log kept as you go makes sure you claim every one.
The minimum wage rises on 1 April 2027
If you employ anyone, the National Living Wage for workers aged 21 and over goes up 3.9% to £13.21 an hour from 1 April 2027. The other rates go up by 3.9% too:
- 18 to 20: £11.27 an hour
- 16 and 17: £8.31 an hour
- Apprentice rate: £8.31 an hour
The government accepted the Low Pay Commission’s recommendations in full. What it means for you: if you pay staff by the hour or by the day, check your prices still cover your wage bill from April.
Making Tax Digital: a year’s grace on late updates
From 6 April 2027, sole traders and landlords whose qualifying income was over £30,000 in the 2025 to 2026 tax year must use Making Tax Digital for Income Tax. Qualifying income is your turnover from self-employment and property, before expenses, so check your takings, not your profit. From 6 April 2028 it covers qualifying income over £20,000.
The Budget added one bit of help: if you join in April 2027, you won’t get penalty points for sending any of your first four quarterly updates late in the 2027 to 2028 tax year. You still have to send all four before you can file your tax return.
What it means for you: the grace is on sending updates late, not on skipping them. If you’re over £30,000, get your income and expenses into software that works with Making Tax Digital before April.
Also in the Budget
- Trading allowance: from 6 April 2027 it triples from £1,000 to £3,000. If all your trading income before expenses is £3,000 or less, you won’t need to declare it or pay tax on it, which helps if you’re starting a round on the side.
- VAT e-invoicing: if you’re VAT registered, your invoices will need to be sent in a set electronic format from 1 April 2029. The government says full details will follow by April 2028.
- Parental pay for self-employed dads: from April 2029, eligible self-employed fathers, partners and adopters in Great Britain will be able to get parental pay for the first time.
- Van tax: vehicle excise duty for cars, vans and motorcycles goes up with inflation (RPI) from 1 April 2027.
Dates for your diary
- 31 January 2027: your Self Assessment return, and any tax you owe, for 2025 to 2026
- 1 April 2027: new minimum wage rates, and van tax goes up
- 6 April 2027: Making Tax Digital for qualifying income over £30,000, 35p a mile over 10,000 miles, and the £3,000 trading allowance
- 1 July 2027: fuel duty goes back up
Getting ready for April? See Work Planner’s plans or book a demo to keep your rounds, invoices and payments in one place.
