The Chancellor delivered the Autumn Budget on 28 October 2026, announcing changes to the UK tax system affecting individuals, businesses and the way HMRC collects and investigates tax liabilities.
While much of the attention has focused on tax rates and allowances, some of the most significant announcements concern HMRC's expanding compliance powers, automated tax payments and debt recovery.
The key Autumn Budget 2026 tax changes include increased taxation of property and savings income, additional HMRC compliance officers, more frequent tax payments and proposed reforms to tax investigations and debt collection. Many measures are scheduled for implementation between 2027 and 2029.
At Fortis Tax, we specialise in HMRC investigations, tax disputes and compliance matters. Here, we examine the announcements from a tax dispute practitioner's perspective.
What Are the Main Tax Changes in the Autumn Budget 2026?
The Government's Autumn Budget 2026 introduces several important measures:
Property and savings income tax rates increase to 24%, 44% and 49% from April 2027.
Further investment in HMRC compliance and enforcement.
New arrangements for collecting Self Assessment, VAT and PAYE liabilities.
Proposed powers to recover lower-value tax debts directly from bank accounts.
Reforms to HMRC information-gathering powers and the correction of tax return errors.
Changes to Capital Gains Tax reliefs and business allowances.
However, the practical implications extend beyond the tax rates themselves.
Is HMRC Increasing Tax Investigations?
Yes. The Government has announced plans to recruit another 670 HMRC compliance officers by 2029–30, in addition to its existing commitment to recruit 5,500 officers.
This represents a substantial expansion of HMRC's compliance workforce.
However, recruiting additional officers also raises questions about training, technical experience and consistency in how investigations are conducted.
Complex tax enquiries require an understanding of legislation, evidence and the circumstances surrounding individual transactions.
At Fortis Tax, we believe effective compliance activity depends not simply on increased resources, but on ensuring investigations are conducted fairly, proportionately and accurately.
Our tax investigation and dispute resolution services help individuals and businesses navigate HMRC enquiries and challenge decisions where appropriate.
How Will HMRC Collect Tax Payments in the Future?
One of the more significant developments concerns changes to how tax liabilities will be collected.
More Frequent Self Assessment Payments
From April 2029, the Government plans to introduce more regular payments towards final Income Tax Self Assessment liabilities for taxpayers required to make payments on account.
The proposed approach involves automated payments during the tax year, with digital tools being developed to help taxpayers estimate liabilities and monitor payments.
Further details concerning payment frequency, safeguards and compliance arrangements are expected.
Direct Debits for VAT and PAYE
From April 2029, businesses will also be required to establish Direct Debit arrangements for VAT and PAYE return liabilities, unless exempt.
Existing payment methods will remain available before the relevant deadline, with Direct Debit acting as a mechanism to collect unpaid balances.
However, important questions remain about how outstanding liabilities will be identified and whether payments will always be allocated correctly.
Errors in HMRC's systems could potentially create disputes over amounts considered outstanding.
Can HMRC Recover Tax Debts Directly From Bank Accounts?
From July 2029, the Government intends to introduce powers allowing HMRC to recover certain lower-value tax debts through regular instalments directly from bank accounts.
The proposals would apply to individuals and companies that can afford to pay but repeatedly fail to settle their liabilities.
A Code of Practice is expected to establish safeguards and the operational framework before legislation is introduced.
From our perspective, careful implementation will be essential.
Disputes may arise where taxpayers challenge the amount owed, the allocation of previous payments or HMRC's assessment of their financial circumstances.
Appropriate safeguards and accessible dispute resolution procedures will therefore be particularly important.
Changes to HMRC Information Powers and Tax Return Errors
The Budget also proposes reforms to Schedule 36 information and inspection powers, including updating the definition of computer records.
These changes are intended to reflect modern digital record-keeping and improve HMRC's access to relevant information.
Further reforms concerning the correction of errors in tax returns are planned from April 2028.
These proposals could have important implications for how errors are classified and how taxpayers respond when inaccuracies become known after submission.
At Fortis Tax, we understand the importance of distinguishing genuine mistakes from deliberate non-compliance.
The detailed legislation will need careful consideration to ensure taxpayers are treated fairly.
Why Does Consultation Matter for Tax Policy?
An important aspect of the Budget is the impact of consultation on proposed legislation.
Following consultation, the Government has decided not to proceed at this time with additional reporting requirements concerning company payments to participants.
This demonstrates how consultation can identify practical difficulties before new obligations are imposed.
Consultation provides businesses, professional advisers and representative bodies with opportunities to highlight unintended consequences, administrative burdens and potential disputes.
As discussed by the Chartered Institute of Taxation, meaningful engagement remains important when developing workable tax legislation.
We believe consultation is particularly valuable where proposed changes could affect taxpayers' rights or increase HMRC's enforcement powers.
What Should Taxpayers Do Following the Budget?
Although many changes will not take effect immediately, individuals and businesses should begin reviewing their circumstances.
Maintaining accurate records, checking HMRC payment allocations and responding promptly to correspondence can help prevent avoidable complications.
Businesses should also monitor forthcoming legislation affecting VAT collection, tax return corrections and compliance procedures.
Where an HMRC enquiry or disagreement arises, obtaining specialist advice early can help clarify the issues and identify appropriate options.
Specialist HMRC Tax Support From Fortis Tax
The Autumn Budget 2026 signals continued investment in HMRC compliance, alongside significant changes to tax administration and collection.
At Fortis Tax, we combine specialist HMRC and private-sector experience to support owner-managed businesses, high-net-worth individuals and professional advisers.
We assist with complex tax enquiries, investigations, appeals and alternative dispute resolution, focusing on protecting our clients' interests and achieving practical outcomes.
Concerned about an HMRC investigation or tax dispute? Contact Fortis Tax to arrange a free, no-obligation initial consultation.
This article reflects the Budget announcements of 28 October 2026. Several measures remain subject to legislation, consultation or further HMRC guidance.