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Part 3: Business Costs – Employment, Property & Operating Expenses

National Minimum Wage increases

From April 2026, the National Minimum Wage and National Living Wage both increase. Employers must ensure payroll systems are updated in advance to remain compliant. This will increase staffing costs across most sectors, particularly for businesses with larger lower-wage workforces.

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Benefits in kind adjustments

Changes to the taxable value of certain employee benefits take effect from April 2026, including:

• Company cars 
• Private medical insurance 
• Other non-cash benefits 

Electric vehicle incentives remain relatively favourable compared to traditional fuel vehicles, which are becoming more expensive from a tax perspective.

Property & Business Rates

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Business rates increase

Business rates multipliers will rise in line with inflation from April 2026. This will increase ongoing occupancy costs for both:

• Owner-occupied premises 
• Rented commercialproperties 

Stamp Duty Land Tax (SDLT)

For non-residential property:

• No major structural changes have been introduced 
• Previous temporary reliefs have now expired 

This means transactions will revert to standard SDLT treatment.

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What this means in practice

Employment costs, benefits changes, and rising property-related expenses mean that businesses will face higher baseline operating costs from April 2026. While these changes are largely incremental, the combined effect will put pressure on margins, making cost control and operational efficiency increasingly important.