November 2026

Technical and Client Update

In this issue

Autumn Budget

Staff entertaining & trivial benefits

April Sands promoted to Associate

Autumn Budget

On 28 October 2026, Chancellor John Healey presented his first Budget to Parliament. Billed as giving families and businesses 'breathing space' from rising costs, it left the rates of VAT and National Insurance unchanged, alongside static Income Tax rates for wages and self-employed income. Even so, the government's own figures show its tax measures raising around £7 billion a year by 2031-32.

Headlines included:

  • A further 2 percentage point rise in Income Tax on savings and property income from 6 April 2027.
  • Plans to halve the Business Asset Disposal Relief limit to £500,000 and introduce a 10% Founders' Relief from 6 April 2027.
  • Plans to reform how capital company distributions are taxed from April 2028.
  • Increases and decreases to plant and machinery capital allowances.
  • A more generous Trading Allowance from 6 April 2027.
  • The cash ISA limit kept at £20,000, and a new First Time Buyer ISA from April 2029.
  • A 3.9% rise in the National Living Wage to £13.21 an hour from 1 April 2027.
  • A £100 Household Energy Payment for Council Tax bands A to D in England from January 2027.

The Chancellor returned to the phrase “breathing space” throughout his speech, and it is worth noting that this is temporary. Tax increases for savers, landlords and business owners begin in April 2027, with further reforms in 2028 and 2029.

The Budget contained measures that will affect both individual taxpayers and businesses. We have summarised the key changes in the pdf linked below. Please contact us if you wish to discuss any matters in more detail.

Autumn Budget Summary PDF

Staff entertaining & trivial benefits

With the Christmas season suddenly on the horizon, employers will be looking at ways to thank their staff for their contributions and hard work during the year. Whatever your plans are, you do need to be aware of the tax implications of entertaining and making such gifts.

STAFF ENTERTAINMENT

As an employer providing social functions and parties for your employees, you have certain National Insurance and reporting obligations.

What you need to report and pay depends on:

  • if it’s an annual event
  • if it’s open to all of your employees
  • if it costs more than £150 per head
  • how many events you provide during the tax year
  • whether the employee is a director, and how much they earn

You might not have to report anything to HM Revenue and Customs (HMRC) or pay tax and National Insurance. To be exempt, the party or similar social function must be all the following:

  • £150 or less per head per year
  • annual, such as a Christmas party or summer barbecue
  • open to all your employees

TRIVIAL BENEFITS

You do not have to report a benefit for your employee if all of the following apply:

  • it costs you £50 or less to provide (per employee)
  • it is not cash or a voucher that can be exchanged for cash
  • it is not a reward for their work or performance
  • it is not in the terms of their contract

This is known as a ‘trivial benefit’. You do not need to pay tax or National Insurance or let HMRC know.

The employee will have to pay tax on any benefits that do not meet all of the above criteria.

If a business provides a bottle of wine in a nice gift bag as a Christmas gift, for example, the value of the gift bag should be included in the value of the gift when deciding whether the total value exceeds the trivial benefits limit.

STAFF CHRISTMAS BONUSES

Staff bonuses issued must be reported through payroll as these are subject to Income Tax and National Insurance.

Bonuses paid to staff must be included in payroll as additional earnings. If you do have plans to pay a bonus, you will need to speak to your payroll provider in advance of the payment to ensure that this is reported to HMRC at the time of payment.

As always, do feel free to contact us if should you require advice.

April Sands promoted to Associate

We are delighted to announce that April Sands has been promoted to Associate within the firm.

April joined Humphrey & Co as a qualified Chartered Certified Accountant back in June 2021, and went on to become a Chartered Tax Adviser in 2024. April is an integral part of our Tax Team which is led by the Tax Partner Kevin Hancock. Since joining the firm April has built a strong reputation for her technical grounding, client focus, and the reliability she brings to everything she takes on. Her progression to Associate reflects the significant contribution she has already made to the firm, and marks a well-deserved next step in her career with us.

As the profession continues to evolve and client expectations around tax advisory grow more complex, a strong and expanding tax team is a strategic priority for the firm. April's promotion is an important part of that growth, strengthening the depth of expertise we can offer to increasingly varied clients.

“I am excited to be taking on the role of Associate and am very grateful for the support and opportunities I have been given since joining Humphrey & Co” said April. “I have really enjoyed developing my career here over the past five years and look forward to this next chapter and continuing to help clients with their tax affairs.”

“April’s promotion is thoroughly deserved. Since joining us she has become someone clients and colleagues rely on, combining real technical depth with a practical, client-first approach. Tax advice is becoming more central to what our clients need from us, and April will play a key role as we continue to grow the tax team.” said Senior Partner, Anthony Smith.

The information provided within our E-Newsletters are general in nature to raise awareness of certain issues that may affect our clients. It is not a substitute for specific advice in your own circumstances. You are recommended to obtain specific professional advice from a professional advisor before you take any action or refrain from action.

Whilst we endeavour to use reasonable efforts to furnish accurate, complete, reliable, error free and up-to-date information, we do not warrant that it is such. We disclaim all warranties.

The information can only provide an overview of the regulations and matters for consideration in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice.