The Chancellor delivered the Autumn Budget on 26 November 2025, outlining a series of measures designed to stabilise the public finances, stimulate long-term growth and ease pressure on the cost of living. Many of the announcements will directly affect SMEs, company directors and self-employed individuals over the coming years.
The Spring Statement 2026 did not introduce major new tax measures, but confirmed a more cautious economic outlook, with lower growth forecasts and continued cost pressures for businesses.
Many of the previously announced changes are now coming into effect from April 2026 and will directly affect SMEs, company directors and self-employed individuals over the coming years.
Taxes, Pensions and Savings
Income Tax and NIC thresholds
Income Tax and National Insurance thresholds will remain frozen from April 2028 to April 2031. As salaries and profits increase, more income will gradually fall into higher tax bands — an important consideration for directors and sole traders.
Salary sacrifice for pensions
From April 2029, the first £2,000 of annual pension contributions made through salary sacrifice will remain exempt from NICs. Any amount above this will attract standard employer and employee NICs. This change will particularly affect owner-managers using salary and pension planning strategies.
National Living Wage and Minimum Wage
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The National Living Wage (21+) will increase by 4.1% to £12.71 per hour from April 2026.
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The National Minimum Wage (18–20) will rise by 8.5% to £10.85 per hour.
These increases will raise staffing costs for many SMEs, especially in retail, hospitality and care sectors.
Dividend, property and savings income
Tax rates on dividends, property income and savings income will increase by 2 percentage points, impacting many company directors, landlords and investors.
Employee Ownership Trusts (EOTs)
Capital Gains Tax relief on disposals to EOTs will be reduced from 100% to 50%, influencing some long-term exit and succession planning structures.
UK Listings Relief
A three-year stamp duty holiday will apply to new UK stock market listings, designed to encourage domestic investment.
Investment and Skills
Apprenticeships
Training costs for under-25 apprentices in SMEs will be fully funded. This may support recruitment pipelines and reduce skills-training costs for smaller businesses.
Travel, Transport and Vehicles
Fuel duty
The temporary 5p reduction in fuel duty has been extended until August 2026, providing ongoing relief for businesses reliant on vehicles.
Electric vehicles (eVED)
From April 2028:
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Electric vehicles: 3p per mile
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Plug-in hybrids: 1.5p per mile
Sector-Specific Measures
Gambling
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Remote Gaming Duty will increase from 21% to 40% in April 2026.
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Online betting duty will rise from 15% to 25% in April 2027.
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Bingo Duty will be abolished from April 2026.
Manufacturing
Electricity prices for manufacturing businesses will be reduced, with further details to be announced.
Drinks industry
The Soft Drinks Industry Levy will be extended to pre-packaged milk-based drinks containing added sugar from January 2028.
Property and HMRC Enforcement
High Value Council Tax Surcharge
From April 2028, a new levy will apply to high-value residential properties:
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£2,500 per year for homes valued over £2 million
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£7,500 per year for homes valued over £5 million
HMRC enforcement
As reinforced in the Spring Statement 2026, HMRC will be granted enhanced powers to pursue tax avoidance schemes, undertake more targeted compliance checks, and act more quickly against suspected fraud, including holding company directors personally accountable where appropriate.
With increased focus on closing the tax gap, businesses can expect greater scrutiny of reporting and record-keeping in the coming years.
Industry Reaction
Federation of Small Businesses (FSB)
The FSB described the Budget as “tax-raising”, warning that increased dividend taxes and pension-related changes could undermine confidence among small firms.
Institute of Directors (IoD)
The IoD welcomed apprenticeship funding but noted that the Budget does little to improve the UK’s growth outlook and increases the overall tax burden on businesses.
What Does This Mean for SMEs and the Self-Employed?
The Autumn Budget 2025 brings a mix of pressure points and opportunities:
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Higher taxes on dividends and asset-based income will affect many company directors and self-employed individuals.
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Wage increases will raise employment costs across multiple sectors.
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Fuel duty relief and fully funded apprenticeships offer some support in the short term.
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Enhanced HMRC enforcement means compliance and record-keeping will be more important than ever.
The overall impact of the Autumn Budget will differ for every business depending on structure, income mix and growth plans. Early planning can make a significant difference in responding effectively to these changes.
If you would like personalised guidance on how the Autumn Budget and the Spring Statement may affect your business or your personal tax position, we are here to help. Contact us at info@acuaccounts.com or call 0203 907 9027 to discuss how we can support your business and cash-flow.
There are also important changes coming with Making Tax Digital for Income Tax. Read more here.
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