Kingswood Newsletter - October 2026
OCTOBER BUDGET PREVIEW 2026
The new Chancellor, John Healey, will deliver the Autumn Budget on 28 October 2026. As Budget Day approaches, attention is turning to how the Government will balance its commitment to economic growth with the need to maintain fiscal discipline.
The Government, led by Prime Minister Andy Burnham, has repeatedly stated that it will not increase the rates of Income Tax, Employee National Insurance, or VAT during this Parliament. Ministers have also sought to reassure businesses that they want to create an environment in which companies feel confident to invest, recruit, and grow.
Both the Prime Minister and Chancellor have promoted a message of hope, growth, and opportunity, while acknowledging that difficult decisions may be required to meet the Government's fiscal rules. Rising borrowing costs and wider economic pressures have reduced the Chancellor's room for manoeuvre, meaning that revenue-raising measures in other areas remain a possibility.
Some tax changes are already known. Most notably, mandatory payrolling of Benefits in Kind is due to commence from 6 April 2027, with restrictions on pension salary sacrifice arrangements expected from 6 April 2029, including a proposed £2,000 limit. Employers should already be considering how these changes may impact their payroll processes and compliance obligations.
A key announcement from the Prime Minister was that the State Pension triple lock will remain in place for the current Parliament but will be reformed from April 2030. He also confirmed that low-income pensioners will not be brought into the Income Tax system during this Parliament, although details of how this will be achieved have not yet been announced.
One area attracting significant speculation is Capital Gains Tax (CGT). Given the Government's commitment not to increase Income Tax, Employee National Insurance, or VAT, some analysts believe CGT could be targeted as a revenue-raising measure. Suggestions range from modest rate increases through to a potential alignment of CGT rates with Income Tax rates. However, no announcements have been made and any changes remain purely speculative at this stage.
Inheritance Tax remains a key concern for farming families. The Prime Minister has recently suggested that the Government is willing to "look again" at concerns regarding the impact of Inheritance Tax changes on family farms. While this has been welcomed by many within the agricultural sector, no specific proposals have yet been announced, and it remains unclear whether any amendments will be included in the Budget.
Whilst there is plenty of speculation surrounding the Budget, it is important not to make decisions based solely on rumours. However, this is an ideal time to review your affairs and understand how potential changes could affect your personal and business finances.
Whether that involves reviewing capital gains exposure, inheritance planning, pension arrangements, or the impact of upcoming employment tax changes, being prepared is always preferable to reacting after the event.
We will be monitoring developments closely between now and Budget Day and will provide further updates as announcements are made. If you would like to discuss how any proposed changes may affect you, please get in touch. As always, we are here to help.
The Government, led by Prime Minister Andy Burnham, has repeatedly stated that it will not increase the rates of Income Tax, Employee National Insurance, or VAT during this Parliament. Ministers have also sought to reassure businesses that they want to create an environment in which companies feel confident to invest, recruit, and grow.
Both the Prime Minister and Chancellor have promoted a message of hope, growth, and opportunity, while acknowledging that difficult decisions may be required to meet the Government's fiscal rules. Rising borrowing costs and wider economic pressures have reduced the Chancellor's room for manoeuvre, meaning that revenue-raising measures in other areas remain a possibility.
Some tax changes are already known. Most notably, mandatory payrolling of Benefits in Kind is due to commence from 6 April 2027, with restrictions on pension salary sacrifice arrangements expected from 6 April 2029, including a proposed £2,000 limit. Employers should already be considering how these changes may impact their payroll processes and compliance obligations.
A key announcement from the Prime Minister was that the State Pension triple lock will remain in place for the current Parliament but will be reformed from April 2030. He also confirmed that low-income pensioners will not be brought into the Income Tax system during this Parliament, although details of how this will be achieved have not yet been announced.
One area attracting significant speculation is Capital Gains Tax (CGT). Given the Government's commitment not to increase Income Tax, Employee National Insurance, or VAT, some analysts believe CGT could be targeted as a revenue-raising measure. Suggestions range from modest rate increases through to a potential alignment of CGT rates with Income Tax rates. However, no announcements have been made and any changes remain purely speculative at this stage.
Inheritance Tax remains a key concern for farming families. The Prime Minister has recently suggested that the Government is willing to "look again" at concerns regarding the impact of Inheritance Tax changes on family farms. While this has been welcomed by many within the agricultural sector, no specific proposals have yet been announced, and it remains unclear whether any amendments will be included in the Budget.
Whilst there is plenty of speculation surrounding the Budget, it is important not to make decisions based solely on rumours. However, this is an ideal time to review your affairs and understand how potential changes could affect your personal and business finances.
Whether that involves reviewing capital gains exposure, inheritance planning, pension arrangements, or the impact of upcoming employment tax changes, being prepared is always preferable to reacting after the event.
We will be monitoring developments closely between now and Budget Day and will provide further updates as announcements are made. If you would like to discuss how any proposed changes may affect you, please get in touch. As always, we are here to help.
MANDATORY PAYROLLING OF BENEFITS IN KIND
Why Now is the Time to Prepare
Why Now is the Time to Prepare
Significant changes are coming to the way Benefits in Kind (BiKs) are reported and taxed. From 6 April 2027, HMRC will begin the mandatory payrolling of certain benefits, with a second phase of changes being introduced from 6 April 2028. While these dates may seem some way off, businesses should start preparing now to ensure a smooth transition and avoid unexpected issues for both employers and employees.
Historically, many benefits have been reported annually via the P11D process, with employees paying tax through adjustments to their tax code. Under the new system, tax on benefits will instead be collected in real time through payroll. HMRC's objective is to modernise the reporting process, improve accuracy and reduce the need for year-end adjustments.
The changes will be introduced in two stages. From 6 April 2027, mandatory payrolling will apply to:
Historically, many benefits have been reported annually via the P11D process, with employees paying tax through adjustments to their tax code. Under the new system, tax on benefits will instead be collected in real time through payroll. HMRC's objective is to modernise the reporting process, improve accuracy and reduce the need for year-end adjustments.
The changes will be introduced in two stages. From 6 April 2027, mandatory payrolling will apply to:
- Company cars
- Car fuel
- Vans
- Van fuel
- Employer-provided medical benefits, including private medical insurance
From 6 April 2028, the requirement will be extended to most other Benefits in Kind. Employer-provided loans and accommodation are currently excluded, with HMRC expected to provide further guidance on their future treatment.
Although the amount of tax employees pay is not changing, the timing of when that tax is collected will. This means some employees may notice changes to their monthly take-home pay once benefits begin to be taxed through payroll. Good communication will therefore be essential. Employers should start planning how they will explain the changes to affected employees well in advance, helping to manage expectations and avoid confusion when the new rules take effect.
Businesses should also review whether their current payroll software and processes are capable of handling payrolled Benefits in Kind. Payroll teams will need accurate and timely information regarding benefits provided, with reporting taking place throughout the year rather than after the year end. Organisations with more complex benefit packages may need to update internal procedures and responsibilities to ensure data is captured correctly.
Whilst HMRC has announced temporary easements for certain non-deliberate inaccuracies during the first year of implementation, employers should not underestimate the amount of preparation required. Early planning will provide time to review benefits, assess systems, train staff and understand any registration or reporting requirements before the deadlines arrive.
With less than a year until the first phase begins, now is the ideal time to start preparing. At Kingswood, we can help you review your current Benefits in Kind arrangements, understand the impact of the new rules, assess your payroll processes and ensure you are ready for the transition. If you would like to discuss how these changes will affect your business, please contact our team.
Holding Companies: An Essential Structure or an Unnecessary Complexity?
This month, we helped a client establish a holding company after they had heard it was an essential structure for any growing business.
Whilst a holding company can be extremely beneficial in the right circumstances, it is not a one-size-fits-all planning tool. This assumption can, at times, be a misconception that may expose business owners to unnecessary complexity.
In this client's case, the structure made sense, so after several years of growth a holding company was established. It offered greater protection for their increasing assets, increased flexibility and mitigated tax exposure for their future ventures and investments, as well as protection for intellectual property associated with a recent business venture.
However, these benefits do not come without trade-offs, which our client understood. The addition of a holding company brings extra compliance requirements, increased administrative responsibilities, and additional professional costs. As a group structure expands, these obligations can increase further.
The key question was not whether a holding company can provide benefits, but whether those benefits justify the additional complexity.
Before restructuring, business owners should seek advice to ensure that any proposed structures align with their long term goals.
Whilst a holding company can be extremely beneficial in the right circumstances, it is not a one-size-fits-all planning tool. This assumption can, at times, be a misconception that may expose business owners to unnecessary complexity.
In this client's case, the structure made sense, so after several years of growth a holding company was established. It offered greater protection for their increasing assets, increased flexibility and mitigated tax exposure for their future ventures and investments, as well as protection for intellectual property associated with a recent business venture.
However, these benefits do not come without trade-offs, which our client understood. The addition of a holding company brings extra compliance requirements, increased administrative responsibilities, and additional professional costs. As a group structure expands, these obligations can increase further.
The key question was not whether a holding company can provide benefits, but whether those benefits justify the additional complexity.
Before restructuring, business owners should seek advice to ensure that any proposed structures align with their long term goals.
Kingswood Team Comes Together for a Day of Collaboration and Fun
At the end of July, we enjoyed a team building day at Rossington Hall, joined by colleagues from the London office.
The event provided a welcome opportunity to spend time together away from the usual working environment, with a programme of activities designed to encourage collaboration, communication and plenty of friendly competition. From axe throwing and duck herding to a bungee run, human table football and a treasure hunt, there was something to challenge everyone.
Beyond the fun, the day also brought out many of the qualities that make effective teamwork possible. Colleagues worked together to solve clues, supported one another through the activities and demonstrated leadership, problem solving and clear communication throughout the day.
It was a great reminder that strong working relationships are built both inside and outside the office. Thank you to everyone who helped organise the day and to all those who took part and made it such an enjoyable and memorable experience.
The event provided a welcome opportunity to spend time together away from the usual working environment, with a programme of activities designed to encourage collaboration, communication and plenty of friendly competition. From axe throwing and duck herding to a bungee run, human table football and a treasure hunt, there was something to challenge everyone.
Beyond the fun, the day also brought out many of the qualities that make effective teamwork possible. Colleagues worked together to solve clues, supported one another through the activities and demonstrated leadership, problem solving and clear communication throughout the day.
It was a great reminder that strong working relationships are built both inside and outside the office. Thank you to everyone who helped organise the day and to all those who took part and made it such an enjoyable and memorable experience.
Annual BBQ
Our 2026 BBQ was once again a great opportunity to bring together clients, contacts and colleagues in a relaxed environment, enjoying some good food and sunshine.
This year we also wanted to remember Bobby Bonsall, a beloved colleague who sadly passed away suddenly in May. As part of the afternoon, we held a raffle with a variety of kindly donated prizes, raising £465. This will be donated to Sheffield Hospitals Charity and marks the beginning of our fundraising efforts for this cause, but more on that later. We would like to thank everyone who contributed so generously, whether by donating prizes or entering the raffle.
Hosted at The George & Dragon in Wentworth, the BBQ was a wonderful opportunity to spend time together, celebrate our valued connections and honour the memory of a much loved colleague.
Thank you to everyone involved in organising the event and to all those who attended and helped make the afternoon such an enjoyable occasion.
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Kingswood
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Joshua Bearn Director
- October 08, 2026
- 01302 349218
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