Autumn Budget 2025 | What It Means for You?

The Chancellor’s Autumn Budget has introduced several changes that will affect small businesses and individuals over the coming years. While some measures are designed to raise revenue, they also create new challenges for business owners. Here’s what you need to know:

Key Changes

  • Income tax thresholds frozen until 2031 – More people will gradually pay higher tax rates even if rates don’t change

  • Dividend & savings tax Increase – From April 2027, tax on dividends and savings income will rise by 2 percentage points

  • Cash ISA limit reduced – Annual allowance for under‑65s will drop to £12,000 from April 2027

  • Pension salary sacrifice cap – From April 2029, NI relief will be limited to £2,000 per year

  • Electric vehicle tax – A new mileage tax will apply from April 2028 (3p per mile for EVs, 1.5p for hybrids)

  • Inheritance tax thresholds frozen – More estates will be caught by IHT as property values rise

What This Means for You

For many small businesses, these changes could mean:

  • Higher payroll costs due to wage increases

  • More tax on dividends and savings, affecting directors

  • The need to plan pensions and investments differently

  • Greater compliance requirements, especially around digital reporting and HMRC registration

How DS Business Support Can Help

At DS Business Support, we’re here to make sure you don’t just react to these changes, but plan ahead with confidence. We can:

  • Review your payroll and dividend strategy to minimise tax impact

  • Advise on pension contributions and savings planning in light of new limits

  • Ensure your bookkeeping software is fully compliant with HMRC’s digital reporting requirements

Final Word

The Autumn Budget highlights the importance of having strong financial systems and trusted advisers in place. DS Business Support is proud to stand alongside our clients, helping them navigate change and protect their businesses.

For your free consultation, get in touch with us today.

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