The day before the Budget, HM Treasury announced five “everyday fixes”. Some of them directly concern small firms and the self-employed, including builders and carers who drive to work in their own cars.
Mileage rate made permanent and higher. The tax-free rate of 55p per mile for the first 10,000 business miles a year is to stay permanently. The rate above 10,000 miles rises from 25p to 35p per mile. According to the government, around 3 million employees and self-employed people who use their private car for work will benefit.
Paid leave for more parents. The right to two weeks of pay (currently worth up to £194 a week) will be extended to more than 150,000 additional parents a year. This includes self-employed fathers and partners who have previously missed out.
End of the Carer’s Allowance “cliff edge”. A carer will no longer lose the whole allowance by earning a penny over the weekly earnings limit. For every £1 earned above the limit, £1 of support will taper away.
Lower tariffs on food. The government is removing import tariffs on more than 100 products, including baked beans, chocolate and gherkins, and is also helping farmers with fertiliser and households heated with kerosene heating oil. Together with earlier tariff suspensions, a family could save up to £21 a year on its food shop.
More Post Office drop boxes. The number of Post Office parcel drop boxes will rise to 1,000, so parcels can be sent and returned without queuing.
Prime Minister Andy Burnham says the changes are meant to give families a little breathing space. Chancellor John Healey announces that the Budget on Wednesday 28 October will go further.
What it means for you
If you are self-employed and drive to clients, the higher rate above 10,000 miles means a larger cost you can deduct from your income. A driver doing 15,000 business miles a year will deduct around £500 more at the new rate (5,000 miles × 10p). A company that reimburses employees’ mileage can pay more free of tax and National Insurance. Self-employed fathers will gain the right to two paid weeks with their child.
Our assessment
These are concrete, if modest, changes. Those who drive a lot for work will gain the most – in the Polish community that means many builders, installers and carers. Details and start dates will probably appear in the Budget documents. Until then, do not change your accounts.
What to do
- Keep an accurate log of business miles (date, route, purpose) – without it you cannot deduct the costs.
- Check the current rules on the GOV.UK: Simplified expenses – vehiclespage.
- Carers: check the Carer’s Allowance rules and follow the date of the change.
- After the Budget on 28 October, confirm the details with your accountant.
Source: HM Treasury, “Everyday fixes to make life easier for millions of Britons” (26 October 2026).
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