by Acuaccounts | Nov 27, 2025 | accounting, budget, cash flow, latest news
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:
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.
by Acuaccounts | Apr 11, 2025 | accounting, budget, latest news, selfemployed, spring statement, tax
What You Need to Know About Chancellor Reeves’ Latest Announcements
Last updated: April 11, 2025
The Spring Statement delivered by Chancellor Rachel Reeves on March 26, 2025, confirms several significant tax and financial changes introduced in the Autumn Budget that will directly impact small businesses and self-employed individuals. As your financial advisors, we have analysed these changes previously announced in the Autumn Budget to help you understand what they mean for your business and finances.
Key Tax and National Insurance Changes at a Glance – as mostly announced in the Autumn Budget
1. Employer’s National Insurance Contributions (NICs) 📈
What’s changing:
- The employer NIC rate will increase from 13.8% to 15% from April 6, 2025
- The earnings threshold will decrease from £9,100 to £5,000
What this means for you: Employers will pay higher NICs on a larger portion of employee earnings. For a single employee earning £30,000 annually, this represents an additional cost of £865.80 per year. For businesses with multiple employees, this increase will significantly impact your bottom line.
Calculation breakdown:
- Current system (until April 5, 2025):
- Taxable earnings: £30,000 – £9,100 = £20,900
- NICs at 13.8% = £2,884.20
- New system (from April 6, 2025):
- Taxable earnings: £30,000 – £5,000 = £25,000
- NICs at 15% = £3,750
- Increase: £865.80 per employee
Our advice: Review your staffing budget immediately and forecast the impact this will have on your business over the next financial year. Consider whether you can offset these costs elsewhere or if you need to adjust your pricing strategy.
2. Employment Allowance Increase 🎯
What’s changing:
- Employment Allowance will increase from £5,000 to £10,500
- The previous upper eligibility threshold of £100,000 will be removed
What this means for you: This is positive news for eligible employers, who can now reduce their annual NIC liability by up to £10,500. With the removal of the £100,000 threshold, more businesses will qualify for this relief.
Important note: Single-director companies without employees remain ineligible.
Example impact: If your total employer NICs amount to £12,000:
- With the new £10,500 Employment Allowance: You’ll only pay £1,500
Our advice: Ensure you’re claiming Employment Allowance if eligible. This could significantly offset the increased NIC costs outlined above.
3. Business Asset Disposal Relief (BADR) Changes 📊
What’s changing:
- BADR Capital Gains Tax rate will increase from 10% to 14% from April 6, 2025
- A further increase to 18% is planned for April 6, 2026
What this means for you: Business owners looking to sell or dispose of qualifying assets will face significantly higher tax liabilities. On a qualifying gain of £100,000, the tax payable will increase from £10,000 to £14,000 (after April 2025) and to £18,000 (after April 2026).
Our advice: If you’re planning to sell your business or dispose of significant assets in the near future, consider accelerating these plans to complete before April 2025 to benefit from the current lower rate.
4. Capital Gains Tax (CGT) Rate Increases 💰
What’s changing: For disposals made on or after October 30, 2024, CGT rates for most assets (excluding residential property) will increase:
- Basic rate taxpayers: From 10% to 18%
- Higher rate taxpayers: From 20% to 24%
What this means for you: This represents a substantial increase in capital gains tax liability. On a gain of £50,000, a basic rate taxpayer would now pay £9,000 instead of £5,000 – an increase of £4,000.
Our advice: Review your investment portfolio and potential disposals with urgency. If you’re considering selling assets, you may want to complete transactions sooner rather than later.
5. Making Tax Digital (MTD) for Income Tax 💻
What’s changing:
- From April 2026: Mandatory for sole traders and landlords with qualifying income over £50,000
What this means for you: If you fall into this category, you’ll need to prepare for quarterly digital tax reporting. This will require MTD-compatible software and potentially new bookkeeping processes.
Our advice: Don’t wait until 2026. Start reviewing your current accounting systems now and consider adopting MTD-compliant software early to avoid disruption when the requirements take effect.
What Business Organisations Are Saying
The business community has expressed mixed reactions to the Spring Statement:
- Federation of Small Businesses (FSB) has expressed concern over the economic outlook, emphasising the need for immediate action to stimulate growth.
- Institute of Directors (IoD) viewed the Chancellor’s approach as a balanced response to fiscal challenges, noting that while the strategy relies more on increasing tax receipts than spending cuts, there are positive aspects such as planning reforms.
Your Spring Statement 2025 Action Plan
Immediate Actions (April-May 2025)
- Recalculate your employer NIC costs using the new rates and thresholds
- Check your Employment Allowance eligibility and ensure you’re claiming the full amount
- Review any planned business or asset disposals in light of the CGT and BADR changes
- Schedule a tax planning session with us to explore specific strategies for your business
Medium-Term Planning (June-December 2025)
- Reforecast your 2025/26 business budget to account for increased employment costs
- Evaluate your business structure to ensure it remains tax-efficient given the changes
- Begin preparations for Making Tax Digital if you’ll be affected by the 2026 implementation
- Consider reviewing your pricing strategy to maintain margins in light of increased costs
Payroll & Employer NICs Checklist
- Recalculate Employer NICs with the new 15% rate and £5,000 threshold
- Adjust staff budgets to reflect increased NIC costs
- Check Employment Allowance eligibility
- Apply for the increased £10,500 Employment Allowance if eligible
Capital Gains & Business Disposal Checklist
- Review business disposal plans (consider completing before April 2025)
- Check CGT exposure on potential asset sales
- Explore tax-efficient investment alternatives where appropriate
Digital Tax Compliance Checklist
- Prepare for Making Tax Digital for Income Tax (MTD ITSA)
- Check if your current software is MTD compatible
- Consider training needs for you or your team on new systems
How We Can Help
At AcuAccounts, we specialise in helping self-employed individuals and small businesses navigate tax changes efficiently. We can:
- Provide a personalised assessment of how these changes will impact your specific business
- Create tax-efficient strategies tailored to your circumstances
- Help you implement and transition to MTD-compliant systems
- Ensure you’re claiming all available allowances and reliefs
Don’t navigate these complex changes alone. Book a consultation with our specialists today to ensure your business is prepared for the changes ahead. Get in touch at info@acuaccounts.com and book a consultation with our team. You can also call us directly on 0203 907 9027.
Visit our contact page at AcuAccounts Contact for more information.
This article provides general information based on the Spring Statement 2025 and should not be considered as specific tax advice. Tax regulations can change, and individual circumstances vary. Always consult with your qualified accountant before making financial decisions.
by Acuaccounts | Nov 5, 2024 | accounting, budget, latest news, selfemployed
In a historic first, Labour Chancellor Rachel Reeves delivered the first autumn budget by a woman and the first Labour budget in 14 years this October. The announcement brings significant changes for small businesses and the self-employed, with a mix of support measures and increased costs coming into effect from April 2025. You can find the full policy paper here.
Key Takeaways for Small Businesses
Employment Allowance Doubles
In a major win for small businesses, the Employment Allowance will double from £5,000 to £10,500 annually, starting in April 2025. This increase will help shield smaller employers from rising employment costs, allowing a small firm to employ four people on the National Living Wage without paying any employer National Insurance Contributions (NICs). Approximately 865,000 small employers will benefit from this change.
Example: Small Business Employment Cost Savings
Consider a small retail shop with four full-time employees on the National Living Wage (£12.21/hour from April 2025):
- Annual salary per employee: £25,397 (based on a 40-hour week)
- Employer NICs per employee without allowance: ~£2,625
- Total employer NICs for four employees: £10,500
- With the new Employment Allowance: £0 payable in NICs
- Total annual savings: £10,500
National Insurance Changes
However, the budget also brings challenges. Employer NICs will rise by 1.2 percentage points to 15% from April 2025. Additionally, the earnings threshold at which employer NICs apply will be lowered from £9,100 to £5,000. This combination could add over £700 to National Insurance costs for each full-time employee on the National Living Wage, and over £800 for those on the average salary (£29,800).
Example: Impact on Medium-Sized Business
For a business with 10 employees on an average salary of £29,800:
- Current NICs per employee (13.8% above £9,100): ~£2,857
- New NICs per employee (15% above £5,000): ~£3,720
- Increase per employee: £863
- Total increased cost for 10 employees: £8,630
- After £10,500 Employment Allowance: Additional net cost of £3,700
National Living Wage Increase
Small businesses will need to prepare for a 6.7% increase in the National Living Wage, rising from £11.44 to £12.21 per hour from April 2025. For 18-20-year-olds, the rate will increase significantly from £8.60 to £10.00 per hour.
Example: Cost Impact for Different Employee Types
For a small business with mixed staffing:
- Full-time experienced employee (40 hours/week):
- Current annual cost at £11.44/hour: £23,795
- New annual cost at £12.21/hour: £25,397
- Annual increase: £1,602
Part-time young staff member (20 hours/week, aged 19):
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- Current annual cost at £8.60/hour: £8,944
- New annual cost at £10.00/hour: £10,400
- Annual increase: £1,456
Impact on Self-Employed and Company Directors
Single Director Companies
Single directors of limited companies who do not have any other employees face a particular challenge—they will not benefit from the increased Employment Allowance. Those paying themselves through payroll above the new £5,000 threshold will face increased employer NIC costs.
Example: Impact on Company Director For a director taking a salary of £25,000:
- Current employer NICs (13.8% above £9,100): £2,192
- New employer NICs (15% above £5,000): £3,000
- Annual increase in costs: £808
Business Asset Disposal Relief
For entrepreneurs planning to sell their businesses, the Business Asset Disposal Relief (formerly known as Entrepreneurs’ Relief) will be retained but with gradual rate increases. The tax rate will rise from 10% to 14% in April 2025 and then to 18% in April 2026, though the £1 million lifetime limit remains unchanged.
Autumn Budget 2024: Key Changes for the Self-Employed
While the rise in Corporation Tax to 25% and freeze on personal tax allowance until 2028 will affect some self-employed professionals, significant updates around National Insurance, Capital Gains Tax, and Making Tax Digital (MTD) will impact those earning from diverse sources or planning to grow their businesses. Self-employed individuals may also see a Capital Gains Tax hike from 10% to 18% at the lower rate and the expansion of Making Tax Digital (MTD) for ITSA will mean that by 2027, freelancers with an income of over £20,000 may be required to maintain digital tax records. While fuel duty and certain pension reliefs are unaffected, these changes reflect the government’s approach to tax equity and compliance, affecting financial planning for many self-employed individuals.
Additional Support Measures
Business Rates Relief Small businesses in England will benefit from a freeze on the small business multiplier for 2025/26, cancelling the scheduled inflation-linked increase. Small firms in retail, hospitality, and leisure sectors will receive an additional year of business rates relief.
Infrastructure Investment The Chancellor has pledged over £5 billion in government investment in housebuilding, with specific support promised for small housebuilders. An additional £500 million has been allocated for pothole repairs in England.
The Federation of Small Business (FSB) on the budget
The FSB welcomed the Chancellor’s decision to increase the employment allowance for small businesses from £5,000 to £10,500, calling it a “very welcome move” that will “shield the smallest employers from the jobs tax.” FSB Policy Chair Tina McKenzie said this represents “a pro-jobs prioritisation in a tough Budget.” However, the FSB warned that larger small and medium-sized businesses “will struggle with the rises on employer national insurance on top of the high costs from the Government’s employment law plans.” It cautioned about the potential impact on jobs, wages and prices.
Looking Ahead
The autumn budget signals a clear shift in business policy, with support targeting small businesses rather than large corporations. However, the combined impact of increased employment costs, higher wages, and various tax changes will require careful planning and potentially tough decisions for many small business owners.
Small businesses should:
- Review staffing costs in light of the new NICs and minimum wage requirements.
- Consider whether they can benefit from the increased Employment Allowance.
- Plan for the implementation of these changes before April 2025.
- Assess their business rates position and available reliefs.
- Consider the timing of any planned business sale in light of the changing tax landscape.
While the increased Employment Allowance offers welcome relief for many small businesses, the overall package of measures presents a mixed picture, with rising costs that must be carefully managed over the coming years.
AcuAccounts is committed to helping clients navigate the complexities of tax legislation, pensions, accounting, and more.
Questions about how the autumn budget could impact your small business or self-employment? Get in touch at info@acuaccounts.com and book a consultation with our team. You can also call us directly on 0203 907 9027.
Visit our contact page at AcuAccounts Contact for more information.
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