Budget 2026 for web developers

What changed for web developers

• A new 10% Founders’ Relief from April 2027. Founders of qualifying high-growth, innovative companies will pay 10% Capital Gains Tax on up to £10 million of lifetime gains.
• No rise in income tax, National Insurance, VAT or Corporation Tax rates. The Budget on 28 October 2026 kept the headline rates where they are. Dividend tax stays at 10.75% and 35.75%, and Corporation Tax stays at 19% to 25%.
• Dividend tax went up from 6 April 2026. The basic and higher dividend tax rates rose by 2 percentage points, to 10.75% and 35.75%. If you pay yourself mostly in dividends, you keep a little less of each pound.
• Income tax thresholds stay frozen until April 2031. The personal allowance stays at £12,570 and the higher rate still starts at £50,270. As your pay and dividends rise, more of them are taxed at the higher rate.
• The rules on taking money out of a company will change from April 2028. The Government will modernise how payouts from companies to shareholders are taxed, so similar payouts are taxed the same way. It says passing a family business down will stay protected. Draft rules come first, so nothing changes yet.
• Tax relief on equipment is changing. From 1 January 2027 companies can claim 50% of the cost of most new equipment in the first year, and from April 2027 the main writing-down allowance falls to 12%. Most small companies still claim the full cost through the Annual Investment Allowance.
• Tax-free mileage goes up to 55p a mile. The company can pay you 55p a mile tax-free for the first 10,000 business miles in your own car or van from 6 April 2026, and 35p after that from 6 April 2027.
• Tax on savings interest rises from April 2027. Personal savings interest above your allowances will be taxed 2 percentage points more. Money kept in the company isn’t affected.
• Business Asset Disposal Relief limit halves to £500,000 from April 2027. The lifetime limit on gains taxed at the lower rate when you sell or close your company falls from £1 million. If you’re planning to sell, it’s worth getting the timing right.

What to do now

Check how you pay yourself. The usual mix of a small salary and dividends often still works best, but the dividend tax rise has narrowed the gap, so it’s worth working out your own figures.

We can take this off your plate

We prepare your accounts and Company Tax Return, look for ways to cut your tax, and file both once you approve. £199 for turnover up to £90,000, £499 above. Send what you have, even if it’s incomplete.