The recent Autumn Budget introduced a series of tax and policy reforms set to strengthen the UK economy and support long-term growth.
For international businesses that are operating, investing or hiring in the UK, these changes can bring new obligations and may require them to reassess their global strategies.
Given these changes, it is important for businesses to understand how they are affected so they can stay compliant and protect their operations.
What is the impact on international employees?
The Budget will have an immediate effect on international employees due to the further increases to the National Living Wage and National Minimum Wage.
From 1 April 2026, the increasing rates will include:
- 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)
These increases will raise employment costs across a range of roles and businesses may feel pressure to raise salaries for more experienced staff to maintain pay equity.
With Income Tax thresholds frozen until 2030 – 2031, more employees will be pushed into higher tax bands and potentially increase pressure on employers to adjust compensation benefits.
Further changes include the new £2,000 cap on tax relief for salary sacrifice pension schemes, which will increase employers’ National Insurance liabilities.
For multinational corporations that utilise the UK as a holding or profit-centre jurisdiction, higher dividend taxation may also prompt a reassessment of profit distribution strategies.
How will higher personal taxes affect international operations?
Many international companies relocate senior staff to the UK and rising personal tax burdens will affect the cost and appeal of these plans.
Increases to Savings Income Tax and Property Income Tax charges on properties worth more than £2 million will drive up living costs for globally mobile workers.
To remain competitive, businesses may need to review and update their remuneration structures.
This could include outsourcing payroll, using Employer of Record (EOR) services or seeking specialist legal and tax support to advise on cross-border compliance risks.
What are the changes to UK working visas?
The Chancellor confirmed that reforms to the visa system are forthcoming to attract high-skilled global talent.
While details are not published yet, additional compliance measures are expected to accompany them.
International employers involved in cross-border recruitment should stay informed on the changes and seek early advice to avoid potential disruption.
How is exporting to UK consumers affected?
A significant reform for international sellers is the decision to remove the £135 Low Value Import (LVI) relief by March 2029.
This change may result in customs duty applying to all low-value consignments entering the UK, alongside potential administrative or processing fees.
The Government is also considering making fiscal representation mandatory for non-UK sellers and marketplaces, which would increase compliance obligations considerably.
International businesses selling directly to UK consumers should review their supply chains, pricing models and customs procedures well ahead of implementation.
What will the new listing relief bring to global companies?
The Autumn Budget introduces 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 aims to attract more international businesses listing in the UK.
However, this new listing excludes the 1.5 per cent SDRT charge and transactions involving mergers or takeovers that result in a change of control.
Businesses considering a UK listing should assess how this relief fits within their financial planning and seek appropriate legal guidance.
How can your business prepare for the reforms?
The Autumn Budget aimed to improve the UK’s competitiveness and appeal for global investment.
International businesses must be proactive in their planning and understand how their operations are affected.
This preparation can include:
- Reviewing employment costs with the wage increases
- Assessing supply chains to new customs requirements
- Re-evaluating relocation plans
- Preparing for potential visa rule changes
- Assessing tax liabilities and their impact
Our advisory team can help you identify any potential risks and position your business to take advantage of new opportunities.
For guidance on how the Autumn Budget will affect your international operations, contact us today.
