The government is set to announce its Autumn Budget on 26th November 2025. We’ve looked at the latest predictions and what they could mean for you and your business.
Here’s a quick rundown of the key predictions and how they might affect your finances:
Possible Tax Changes
- Income Tax Thresholds Might Stay Frozen
The amount of income you can earn before paying higher tax rates may remain the same until 2030. This means as your profits grow, you might pay more tax even without a rate increase. - Changes to ISA Allowances
The government may reduce the amount you can put into tax-free cash ISAs from £20,000 to £10,000, encouraging more investment in stocks instead. This mostly affects personal savings but could impact how business owners manage their personal finances. - Pension Contribution Limits
There could be tighter limits on how much you can contribute to your pension with tax relief. This may affect business owners who use pension contributions to reduce their taxable income. - Inheritance Tax Adjustments
Changes may come in the way gifts and inheritances are taxed, which is important if you’re planning business succession or estate planning. - New National Insurance on Rental Income
If you rent out property (including business premises), a new National Insurance charge might apply, potentially increasing your costs.
Public Spending and Borrowing
The government is under pressure to reduce borrowing, which means there could be less public spending and more tax increases. For businesses, this could translate into tighter economic conditions and possibly less government support or grants.
Wage and Pension Changes
- Minimum Wage Increase
The national minimum wage is expected to rise to around £12.21 per hour. If you employ staff, this will affect your payroll costs. - State Pension Boost
Pensioners will see an increase in payments, which might be good news if you or your employees rely on state pensions.
Economic Outlook
Experts warn inflation might remain high, which can increase your business costs (like supplies and utilities). Planning ahead for these potential rises is key.
What Should You Do?
- Review your tax planning to prepare for possible changes in thresholds and reliefs.
- Consider your pension contributions carefully, especially if you use them to reduce tax.
- Plan your staffing budget to accommodate the minimum wage increase.
- Keep an eye on cash flow to manage rising costs from inflation and any new charges.
If you have any questions about this, please do not hesitate to contact us on 01227 277667, or email us at admin@mphaccoumntants.co.uk.
