What's changed in tax
Tax rules change. This page lists the changes that matter if you're self-employed or have a side hustle: what's changing, when it actually applies, and what we've updated at Hustle Mate because of it.
Last checked against GOV.UK: 9 November 2026Budget 2026 (28 October 2026)
Trading allowance rises to £3,000
The tax-free trading allowance goes up from £1,000 to £3,000. The point where you have to report trading income through Self Assessment goes up to £3,000 too.
- When
- From 6 April 2027 (the 2027/28 tax year). Until then it's £1,000.
- Who it affects
- Side hustlers and anyone with small amounts of self-employed or casual income.
- Becoming law
- Through Finance Bill 2026-27.
Example: sell £2,000 of crafts in this tax year (6 April 2026 to 5 April 2027) and you're over the £1,000 limit, so you'd need to tell HMRC.
Higher mileage rates are here to stay, and go up again above 10,000 miles
The 55p a mile rate for the first 10,000 business miles in a car or van, which started on 6 April 2026, is now permanent. The rate for miles above 10,000 goes up from 25p to 35p.
- When
- 55p already applies for 2026/27 (in force). 35p above 10,000 miles from 6 April 2027 (announced).
- Who it affects
- Sole traders who claim mileage for a car or van using simplified expenses, and employees who use their own vehicle for work.
For your 2025/26 tax return, the rates are still 45p and 25p.
Higher tax on rental profits and savings interest
From April 2027 rental profits get their own tax rates. The Budget set them at 24%, 44% and 49% in England, Wales and Northern Ireland, 2 points higher than the rates already in law. Tax on savings interest above your allowances rises to the same 24%, 44% and 49% across the UK.
- When
- From 6 April 2027 (the 2027/28 tax year).
- Who it affects
- Landlords, and anyone with savings interest above their Personal Savings Allowance. Profits from self-employment stay at the normal rates.
- Becoming law
- Through Finance Bill 2026-27.
Making Tax Digital: a penalty-free first year if you join in April 2027
If you have to start Making Tax Digital for Income Tax on 6 April 2027, you won't get penalty points for sending any of your first four quarterly updates late in 2027/28. You still need to send them, and late tax returns and late payments can still be penalised.
- When
- The 2027/28 tax year.
- Who it affects
- Sole traders and landlords whose qualifying income was over £30,000 on their 2025/26 tax return.
Payments on account to become smaller and more regular
Instead of two big payments on 31 January and 31 July, people who make payments on account will make smaller, more regular payments during the tax year. If you also have a job or a pension, you may pay through your tax code instead.
- When
- From April 2029. Nothing changes before then.
- Who it affects
- Anyone who makes payments on account towards their Self Assessment bill.
- Details
- Still to be set out by HMRC.
How we keep this page up to date
I'm a Chartered Accountant, so keeping up with tax changes is part of my job anyway. When something changes, we check it against GOV.UK, add it here and update the guides, tools and Ask Hustle Mate answers it affects. Anything that could change how much tax you pay, or when you need to file, gets done first.
Spotted something we've missed? Let us know.
Sources (GOV.UK): Budget 2026 · Overview of tax legislation and rates · Increasing the trading allowance · Tax rates for property and savings income · Simplified expenses: vehicles · Penalties for Making Tax Digital for Income Tax · Timely payments in Self Assessment factsheet
General guidance, not personal tax advice.