The Spring Statement 2026 was delivered by the Chancellor on 3 March 2026. With the government wanting the Autumn Budget as the only major fiscal event each year, the Spring Statement was positioned as a “low-key” economic update.

As such, there were no major new taxes introduced but the statement confirmed a number of important developments. Several previously announced changes remain in place while others are approaching over the next few years. Combined with frozen tax thresholds and increasing employment costs, the overall tax burden for online businesses and company directors continues to rise.

Alongside the Statement, the Office for Budget Responsibility (OBR) published its latest economic forecast. One of the most notable projections is that:

‍the tax to GDP ratio is expected to reach 38% by 2030 to 2031, which would be the highest level of taxation since the Second World War.

Summary (TLDR)

For ecommerce business owners the key challenges include:

• Frozen income tax thresholds until 2031 increasing personal tax exposure (from April 2026)
• Rising dividend tax rates: +2% for basic & higher rate taxpayers (from April 2026) as announced in the Autumn Budget 
• Doubling of penalties for late corporation tax returns (from April 2026) 
• Increased rate for Business Asset Disposal Relief: 18% (from April 2026), up from 14% in 2025 and 10% in 2024
• Reduced Cash ISA Allowance: Maximum annual contribution of £12,000 (From April 2027)

Not relevant to all online businesses but also worth noting are:

• Higher employment costs through National Living Wage increases (from April 2026)
• Lower income tax relief for VCT investment: 20% (from April 2026), down from 30%
• Frozen Inheritance Tax thresholds until 2031 (from April 2026)
• Rising property income tax rates: +2% across all tax bands (from April 2027)
• Rising savings tax rates: +2% across all tax bands (from April 2027)
• New Inheritance Tax rules affecting pension funds & business assets (from April 2027)
• Capped NIC exemption on employee pension contributions via salary sacrifice: Only the first £2,000 is exempt (from April 2029)

Careful planning will be essential to manage tax exposure and support long term growth.

This guide explains the key announcements from the Spring Statement 2026 and what they mean for online business owners.
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Income Tax - Frozen Thresholds Continue

Income tax thresholds remain frozen until April 2031 as follows:
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Because wages tend to increase over time, frozen thresholds gradually push more taxpayers into higher tax bands. This process is known as fiscal drag. The extension to 2031 means that, by that time, UK tax payers would have faced a decade of these “stealth taxes.”

For company directors and online business owners taking income from their businesses, this means personal tax liabilities are likely to increase even if tax rates themselves do not change.

Keep in mind, the personal allowance also continues to taper once income exceeds £100,000. It is fully withdrawn when income reaches £125,140.
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Dividend Tax Changes for Business Owners

Dividend income remains one of the most common ways for ecommerce company directors to extract profits from their businesses.

The dividend allowance remains at £500.

As previously announced in the Autumn Budget, the plan remains that from April 2026 dividend tax rates will increase by 2% for basic and higher rate taxpayers. Meaning the dividend tax rates for 2026/27 are as follows:
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Although this increase may appear small, it continues the trend of gradually increasing taxation on company dividends.

For many directors this change will slightly reduce the tax efficiency of dividend based remuneration strategies.
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Tax on Savings Income

Savings income includes any interest you earn from bank accounts and building societies.

The Personal Savings Allowance remains unchanged and as follows:
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A starting rate of 0% on the first £5,000 of savings income remains available for individuals with low levels of other income.

However from April 2027, for any interest earned above your allowance, the government will increase savings tax rates by 2%, meaning the new rates will be as follows:

• Basic rate: 22%
• Higher rate: 42%
• Additional rate: 47%

Tax on Property Income

Property income is income generated from letting land or buildings.

Individuals currently benefit from a £1,000 property allowance, which allows you to earn small amounts of rental income tax free.

From April 2027 the government will introduce separate tax rates for property income as follows:
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These changes may affect landlords and online business owners who hold investment properties alongside their main trading activities.
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Pension Tax Limits

Pension tax limits remain unchanged for the 2026/27 tax year and are as follows:
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Although there had been speculation that the tax free lump sum might be reduced, the government did not introduce any changes.

For business owners, pensions (including SIPPs) therefore remain one of the most tax efficient ways to extract income and build long term wealth. We cover 10 reasons you might consider a Self Invested Personal Pension (SIPP) here.
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ISA Limits and Future Restrictions

Except for a change to Cash ISAs, the ISA allowances remain the same until April 2031:
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From April 2027, new restrictions will apply to the use of cash ISAs.

Each year, you will only be able to contribute a maximum of £12,000 into a Cash ISA. Any remaining allowance (£8,000) must be invested in stocks and shares.

However, individuals aged over 65 will continue to be able to allocate the full £20,000 to cash.

The policy appears designed to encourage more long term investment into UK companies and financial markets.
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National Insurance Contributions

National Insurance rates remain unchanged for 2026/27 and are as follows:
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The Employer Secondary Threshold remains £5,000 until April 2031.

The Employment Allowance also remains available. Eligible businesses can reduce their Employer National Insurance bill by £10,500 per year.
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National Living Wage Increases

From 1 April 2026, new minimum wage rates will apply. The new rates are as follows:

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For many small and medium sized businesses these increases will significantly affect employment costs.

Businesses with large workforces or lower margin operations may need to review pricing, productivity and staffing strategies.
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Salary Sacrifice Changes for Pensions

One of the most significant future changes announced relates to pension salary sacrifice arrangements.

Salary sacrifice allows employees to give up part of their salary in exchange for pension contributions from their employer. This structure currently reduces both income tax and National Insurance contributions (NICs).

From April 2029, only the first £2,000 of employee pension contributions through salary sacrifice will be exempt from National Insurance.

Contributions above this level will become subject to both employer and employee National Insurance.

Income tax relief on pension contributions will remain unchanged.

For businesses this change could increase payroll costs in the future. Employers who use salary sacrifice arrangements extensively may need to review their remuneration strategies.
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Capital Gains Tax

Capital Gains Tax rates remain unchanged for the 2026/27 tax year.

The annual exempt amount remains £3,000.

However the rate for Business Asset Disposal Relief will increase.

From 6 April 2026 the rate will rise to 18%. (Up from 14% in 2025/26 and 10% in 2024/25)

This relief applies to the sale of qualifying businesses and certain shares. Unfortunately, the change slightly increases the taxes applicable when selling an ecommerce business. We cover 10 ways to reduce CGT in this video.
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Inheritance Tax Changes Affecting Business Owners

Inheritance Tax thresholds remain frozen until April 2031 as follows:
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This is similar to the approach used for Income Tax. These frozen thresholds combined with rising asset values mean more estates will fall within the Inheritance Tax net.
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Pension Funds and Inheritance Tax

From April 2027 unused pension funds will become part of a person’s estate for Inheritance Tax purposes.

Previously pensions often sat outside the estate.

This change could significantly increase tax liabilities for some families.

Example scenario:
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Under current rules the estimated Inheritance Tax liability would be around £270,000.

Under the new rules it could increase to approximately £430,000.

This makes early estate planning increasingly important for online business owners, particularly those building significant pension pots.
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Agricultural Property Relief and Business Property Relief

From April 2026 agricultural and business property will continue to qualify for 100% Inheritance Tax relief up to £2.5 million.

Assets above this level will receive 50% relief.

Important points include:

• The £2.5 million allowance applies per individual
• It refreshes every 7 years
• It becomes transferable between spouses and civil partners

Corporation Tax

Corporation tax rates remain unchanged and as follows:
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The government has confirmed that the main rate will remain capped at 25% for the duration of the current Parliament.

However, penalties for submitting corporation tax returns late will double from April 2026 as follows:

• Initial Penalty: £200 (up from £100)
• 3 Months Late: £400 (up from £200)
• Third Consecutive Failure (1 day late): £1,000 (up from £500)
• Third Consecutive Failure (3 months late): £2,000 (up from £1,000)
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Capital Allowances and Investment Relief

The capital allowances system has become increasingly complex.

Key changes include:

The main rate Writing Down Allowance will reduce from 18% to 14% from April 2026.

A new 40% First Year Allowance will apply to qualifying main rate assets.

The £1 million Annual Investment Allowance remains unchanged.

The 100% First Year Allowance for zero emission cars and electric vehicle charge points has been extended until 2027.

For ecom businesses planning large capital investments the timing of expenditure may significantly affect the tax relief available.
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Business Investment and Incentive Schemes

Research and Development Advance Assurance

A new pilot scheme launching in Spring 2026 will allow SMEs to obtain advance assurance on R&D tax relief claims.

This aims to reduce uncertainty and increase confidence when making claims. We hosted an interview with an expert who helps businesses with R&D tax claims here.
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Enterprise Investment Scheme and Venture Capital Trusts

Investment limits for these schemes are increasing as follows:
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Perhaps more important here is that for online business owners looking to invest in these schemes, from 6 April 2026 the income tax relief for Venture Capital Trust investments will fall from 30% to 20%.
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Final Thoughts for UK Business Owners

The Spring Statement 2026 did not introduce major headline tax increases. However it confirms a continuing trend towards higher overall taxation and increased complexity within the UK tax system.

In this environment, proactive tax planning is more important than ever for online entrepreneurs. It may be worth reviewing your structure, remuneration strategy and long term succession planning to ensure you remain as tax efficient as possible.

We'll soon be releasing a 2026 version of our 2025 blog on how to pay yourself tax-efficiently as a director.

If you’d like our help with any of this, please get in touch on this page.