Chancellor John Healey presented Budget 2026 on Wednesday 28 October 2026. If you run a UK limited company from Morocco, Türkiye, Vietnam or anywhere else, the short answer is this: the four numbers we flagged did not change, but online marketplace sellers have a new VAT rule to plan for from October 2027.
This recap uses the official Budget documents published on GOV.UK. It covers the rates that affect your company and your dividends, and leaves out measures that only apply to people who live in the UK.
The four numbers, after the Budget
Before the Budget, we flagged four numbers in our pre-Budget guide. All four stay the same.
| Measure | Before 28 October | After the Budget |
|---|---|---|
| Corporation Tax main rate | 25% | No change |
| Small profits rate (profits up to £50,000) | 19% | No change |
| Dividend tax (above the £500 allowance) | 10.75%, 35.75%, 39.35% | No change, also for 2027-28 |
| VAT registration threshold | £90,000 | No change |
The government also repeated its commitment to keep the main rate of Corporation Tax at no more than 25% for the rest of this Parliament. For planning, that is the most useful line in the Budget: your company’s tax rate is not expected to move before the next general election.
Other changes that affect directors abroad
Online marketplaces and VAT, from October 2027. Online marketplaces will become responsible for collecting VAT on sales by UK VAT-registered businesses. They will also collect it for other UK businesses that sell more than £90,000 a year on a single platform. Business-to-business sales, second-hand goods and non-business sales are left out.
A UK limited company is a UK business, wherever its directors live. So if your company sells on Amazon, eBay or a similar platform, this rule is likely to apply to you. The platform will take the VAT at the point of sale, which changes your cash flow and how you price. Ask your accountant how it applies to your sales before the rules start.
Equipment and capital allowances. If your company buys equipment, the first-year allowance rises from 40% to 50% from 1 January 2027. The main writing-down allowance falls from 14% to 12% from 1 April 2027. Your accountant can tell you whether the timing of a large purchase matters.
Business rates. The small business rates relief threshold rises for retail, hospitality and leisure premises in England. This only matters if your company occupies premises in the UK. A registered office or mail-forwarding address does not count.
The Budget did not change Companies House identity verification. That runs under separate law, and the transition period still closes on 17 November 2026.
What to do now
- If you pay yourself dividends, nothing changes for 2026-27 or 2027-28. Keep your usual planning with your accountant.
- If you sell through an online marketplace, check your sales on each platform against £90,000, and ask your accountant how the October 2027 rule applies to you.
- If you plan to buy equipment for the company, ask whether buying after 1 January 2027 gives you a better allowance.
Your normal deadlines carry on. Annual accounts for a 31 January year end are due at Companies House on 31 October. VAT returns for the quarter to 30 September are due on 7 November.
Keep your filings on time, Budget or not.
Accounts, Corporation Tax and confirmation statements for your UK company, handled with our accounting partners.
See accounting services →Frequently asked questions
Did Budget 2026 change Corporation Tax? No. The main rate stays at 25% and the small profits rate at 19% for profits up to £50,000.
Did dividend tax go up in Budget 2026? No. The rates that started in April 2026 stay at 10.75%, 35.75% and 39.35% above a £500 allowance. Whether you pay UK tax on dividends while living abroad depends on your situation and your country’s rules, so ask a qualified adviser.
When does the online marketplace VAT rule start? October 2027. The government will publish the detailed rules before then.
Does Budget 2026 change my identity verification date? No. Your real date is still your company’s next confirmation statement.
Where Launchese fits in
Launchese helps founders in more than 100 countries run UK companies: formation, UK address services, Companies House filings, identity verification as an Authorised Corporate Service Provider (ACSP), and accounting through our partners. We do not give tax advice, but we can keep your filings on time and connect you with an accountant who can.
Questions about your UK company?
Book a free 15-minute call with our team. We do not give tax advice, but we will point you in the right direction.
Book your free 15-min call →This is general information, not tax advice. Check how a change applies to you with a qualified adviser.
