The Autumn Budget brings higher minimum wages alongside targeted support for small businesses and self-employed practitioners. For aesthetic clinics, the practical impact will depend on how you employ your team, where you operate and which reliefs you qualify for.
Published on 28 October, the Government’s Budget 2026 sets out changes with different start dates. Now is a useful time to review your cash flow, employment costs and tax planning with your accountant, rather than treating every announcement as an immediate change to your finances.
From 1 April 2027, the National Living Wage and National Minimum Wage rates will rise by 3.9%. The hourly rates will be £13.21 for workers aged 21 and over, £11.27 for those aged 18–20, and £8.31 for 16–17-year-olds and eligible apprentices.
For clinics employing receptionists, administrative staff or junior team members, this means reviewing payroll budgets before April. Even if you already pay above the minimum, consider whether your pay structure still reflects the responsibilities of different roles.
For example, a 50p hourly increase for an employee working 37.5 hours a week adds £975 to annual gross pay over 52 weeks, before any associated employer costs. Multiply that across your team and a relatively small hourly increase can become a more substantial commitment. Include any resulting pension and employer National Insurance costs in your calculations.
From 1 April 2027, qualifying retail, hospitality and leisure properties in England will benefit from higher Small Business Rate Relief thresholds. The rateable value threshold for full relief rises from £12,000 to £18,000, with tapered relief extending to £21,000.
But an aesthetic clinic should not assume it qualifies simply because it occupies a high street unit or offers services to the public. Medical clinics and beauty businesses may be treated differently. Ask your local authority to confirm how your premises are classified and which reliefs apply before building a saving into your forecast.
Rateable value is also different from your rent or turnover. Check the figure attached to your property and review the actual rates bill alongside your lease and other premises costs. Businesses in Scotland, Wales and Northern Ireland should check the arrangements in their own nation.
If you use your own car or van to travel between clinics or for other qualifying business journeys, the mileage announcements may be relevant to you.
The 55p rate for the first 10,000 business miles, introduced for 2026/27, is being made permanent. From 6 April 2027, the rate above 10,000 business miles rises from 25p to 35p. These dates are set out in the Budget policy decisions.
For employees, approved mileage rates set the limits for tax-free reimbursement when using their own vehicle. For eligible self-employed practitioners, the rates can be used under simplified motoring expenses. A mileage deduction reduces taxable profits; it does not mean HMRC pays you that amount for each mile.
Keep a record of the date, destination, purpose and distance of each journey. Ask your accountant which journeys qualify and whether mileage rates or actual vehicle costs are appropriate for your circumstances.
The Income Tax Trading Allowance will increase from £1,000 to £3,000 from 6 April 2027. This may be relevant to practitioners with small amounts of independent trading income, although established clinics are likely to have more substantial income and expenses.
Do not assume the allowance can simply be added to all your usual expense claims. Ask your accountant whether claiming the allowance or deducting actual allowable expenses gives the appropriate result for your business. Keep records from the outset, even when a new venture is small.
The Government plans to extend parental pay to eligible self-employed fathers, partners and adopters in Great Britain from April 2029 through a new Parental Allowance. Detailed eligibility criteria are still to be confirmed.
This could help practitioners who currently need to fund time away from their business themselves. But it is a future measure, so anyone planning leave sooner should base their budget on the support currently available. The Government’s statement on parental pay and mileage gives more detail.
Alongside the Budget changes, VAT remains an important consideration for aesthetic businesses. The current registration threshold is £90,000 of taxable turnover over a rolling 12-month period. Registration can also be triggered if you expect taxable turnover to exceed £90,000 in the next 30 days alone.
If you increase treatment prices to cover higher costs, monitor the effect on taxable turnover as well as profit. You could move closer to the registration threshold without seeing a similar improvement in your income.
Medical qualifications alone do not make aesthetic treatments VAT-exempt. The purpose of the treatment and the evidence supporting any exemption matter. Our VAT in aesthetics guide and conversation with VAT adviser Veronica Donnelly explore the distinction between medical care and cosmetic treatment, and the records clinics need to retain.
Start with an updated cash flow forecast, separating confirmed additional costs from savings that depend on eligibility. Review staffing, premises, products and equipment costs, then look at what each treatment contributes after those expenses. This will help you make informed decisions about pricing, recruitment and investment.
Our guide to finance, tax and VAT in aesthetics offers further guidance on managing clinic finances. You can also revisit our top tax tips for aesthetic practitioners for background, bearing in mind that it was written for the 2025/26 tax year.
As you review your budget, check that your insurance reflects your current treatments, equipment and working arrangements. Changes to your business should prompt a conversation about cover, particularly if you are adding procedures or investing in new devices.
Contact the Hamilton Fraser team on 0800 63 43 881 to review your cosmetic insurance and discuss the cover your business needs or get a quote online today.
This article gives general information based on announcements available on 30 October 2026. Speak to your accountant or tax adviser about how the measures apply to your circumstances.
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