The Autumn Budget has introduced a wide range of reforms to taxation in a bid to fund measures that will strengthen the UK’s economy.
Some of these changes are set to have a knock-on effect on how international businesses trade, operate and invest within the UK.
Given these changes, it is important that your business activities in the UK stay compliant and informed on how you could be affected.
How are international employers affected?
The recent increase in the National Living and National Minimum Wages means that international businesses operating in the UK now face higher employment costs.
From 1 April 2026, the rates will increase as follows
- National Living Wage – £12.71 per hour (up 4.1 per cent)
- National Minimum Wage for 18-20 year olds – £10.85 (up 8.5 per cent)
- National Minimum Wage for 16-17 year olds and apprentices – £8.00 per hour (up 6 per cent)
The continued freeze of Income Tax thresholds until 2030 – 2031 will also push more employees into higher tax bands and may require employers to consider salary increases to maintain take-home pay.
Employers may face increased wage costs across a range of roles and adjust the pay of more experienced staff to maintain fairness.
The new £2,000 cap on tax relief for salary sacrifice pension schemes will further increase employers’ National Insurance costs.
The Budget also brings implications for multinational corporations (MNCs) that use the UK as a holding or profit centre jurisdiction.
Higher dividend taxation means companies may need to reassess how their profits are distributed and reinvested.
How will higher personal tax burdens affect businesses?
International companies often relocate senior leaders to oversee operations and the Budget’s reforms may raise tax liabilities for those moving to the UK.
The increase in Savings Income Tax and Property Income Tax will place additional pressure on individuals with diversified income streams, particularly for international hybrid workers.
When the new reforms are paired with the higher council tax charges on properties worth more than £2 million, the overall cost of relocating workers to the UK is expected to rise.
Companies relocating staff to the UK will need to revisit their remuneration policies to ensure incentives remain appealing and competitive.
Many businesses may consider:
- Outsourcing payroll
- Using Employer of Record (EOR) services
- Seeking legal support to help avoid financial and regulatory risks
Businesses may need to assess their relocation allowances and ensure they are still a beneficial option.
Are working visas set to change?
The Chancellor announced that reforms to the UK’s visa system are planned, although the full details have not been published yet.
These reforms aim to attract highly skilled global talent and new compliance requirements will likely accompany them.
International employees who rely on cross-border recruitment should stay alert for the upcoming consultation and seek legal advice for any potential changes.
How is exporting to UK consumers affected?
One of the most notable changes for international businesses is the Government’s decision to remove the £135 Low Value Import (LVI) relief by March 2029.
The reform will introduce customs duty on all low-value consignments entering the UK and may include additional administrative or handling fees.
The Government is also considering making fiscal representation mandatory for non-UK sellers and marketplaces, which would significantly increase compliance obligations.
Businesses exporting directly to UK consumers will need to review their customs processes and pricing structures well ahead of implementation.
What will the new listing relief bring to international businesses?
The Budget introduced a three-year exemption from Stamp Duty Reserve Tax (SDRT) for companies listing on UK markets.
This measure applies to share transfer agreements from 27 November 2025 and is designed to attract more international businesses listing in the UK.
However, it does not apply to the 1.5 per cent SDRT charge or transactions connected to mergers or takeovers that involve a change of control.
The exemption is meant to improve the appeal of newly listed companies to larger, established listed entities by reducing upfront costs.
Businesses considering a UK listing should factor this relief into their planning and seek legal advice on how their operations can benefit.
How can international businesses prepare?
The Autumn Budget aimed to improve the UK’s position for global investment and boost growth.
The recent reforms mean that proactive planning and understanding of how operations are affected are crucial for international businesses.
This can include:
- Assessing the impact of customs reforms on supply chains
- Reviewing workforces
- Reviewing relocation strategies
- Preparing for potential visa rule changes
- Assessing tax liabilities
Our expert team can help businesses stay compliant with changing policies and take advantage of the opportunities the new reforms can bring.
Contact our team for advice on how the Autumn Budget affects your international operations.