Autumn Budget 2026: What the Chancellor Actually Delivered for Tradespeople
What happened
Chancellor John Healey delivered the Autumn Budget on 28 October 2026. For self-employed tradespeople, the headline changes are:
Trading allowance tripled to £3,000 from April 2027. If you earn under £3,000 a year from self-employment, you won't need to register with HMRC or pay tax on it. Above that, you can choose between the £3,000 allowance or your actual expenses — but not both.
55p mileage rate made permanent. The temporary increase from 45p to 55p per mile (for the first 10,000 business miles) is now permanent. The rate above 10,000 miles rises from 25p to 35p from April 2027. According to FreeAgent's analysis, this is a significant win for tradespeople who drive between jobs.
Self-employed parental pay. For the first time, about 150,000 self-employed dads, partners and adopters will qualify for a parental allowance from April 2029.
National Living Wage rises to £13.21/hour (up 3.9%) from April 2027. Relevant if you employ apprentices or labourers.
Fuel duty freeze extended to July 2027, including the 5p discount that's been running since 2022.
MTD penalty grace period. Tradespeople entering Making Tax Digital for Income Tax from April 2027 won't get late filing penalties for their first four quarterly updates.
On the construction side, the Budget pledged £1.5 billion for 10,000 new homes and mandated that at least 3% of workers on large government construction projects must be apprentices. Major building regulation changes have been ruled out for the remainder of this Parliament.
What this means for tradespeople
The mileage rate change is the most immediately useful. If you're a plumber driving 15,000 business miles a year, the permanent 55p rate plus the higher 35p rate above 10,000 miles means you can claim more against your tax bill than you could two years ago.
The tripled trading allowance mostly benefits side-hustlers and part-time trades — if you're running a full-time business, you'll almost certainly earn above £3,000 and will want to claim actual expenses instead.
The MTD grace period is worth noting: if you're being brought into Making Tax Digital from April 2027, you won't be penalised for late quarterly returns in your first year. But you still need to file them.
Industry reaction was mixed. The Construction Products Association said the measures "fall short of addressing immediate pressures," while the 3% apprenticeship mandate on government projects was welcomed as a step toward tackling the skills shortage.
What to do about it
- Check your mileage records. If you're not already tracking business miles, start now — the higher rates mean more money back at tax time.
- Talk to your accountant about MTD. If you earn over £30,000 from self-employment, Making Tax Digital is coming for you in April 2027. The penalty grace period is generous, but you still need to be set up.
- Review your Google reviews. In a tighter market with more competition for work, your online reputation is what sets you apart. Tradespeople with strong Google review profiles consistently win more enquiries than those without.
Source: FreeAgent — Autumn Budget 2026 key takeaways