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 | Feb 28, 2023 | accounting, cash flow, tax
Effective cash flow management is critical in today’s uncertain economic climate. By maintaining operational consistency, efficient accounting, and regularly monitoring cash flow, businesses can identify potential problems before they occur. Offering early payment discounts, negotiating payment terms, and improving operational efficiency can also improve cash flow. Additionally, using cash flow management software can aid in expense tracking, forecasting, and problem identification.
This article will delve into three financing options for B2B and B2C businesses. Firstly, the Buy Now Pay Later (BNPL) service, allows customers to purchase products or services and pay for them at a later date. Secondly, Invoice Factoring permits businesses to sell their unpaid invoices to a third party for immediate cash. Lastly, we will review offering financing to customers through B2B finance as an effective way to attract and retain customers while assisting them in managing their cash flow.
Buy Now Pay Later (BNPL): Offer delayed payment options to your customers
Providing flexible payment options can help small businesses set themselves apart from their competitors, lessen payment friction, and drive sales; especially when customers may require additional time to make payments.
Buy Now Pay Later (BNPL) services offer customers a way to make purchases without immediate payment. However, these services also come with fees for merchants, automatically deducted from the sum the BNPL lender remits to the merchant, similar to merchant arrangements between credit card companies and retailers.
Typically, the BNPL vendor will take a percentage of the retail transaction, ranging from 2% to 8%, and bill it directly to the merchant. One of the most popular BNPL providers in the UK, Klarna, offers payment plans including Pay in 4, Pay in 30 days, and Financing; with flat fees and percentage fees varying by location. Klarna charges a £0.30 transaction fee and variable fees between 3.29% and 5.99% of the transaction total. PayPal charges 2.9% plus a £0.30 flat fee per transaction, with the popular Pay in 3 Option included in the current PayPal rate.
Compared to payment processor Stripe’s 1.4% plus a £0.20 flat fee per transaction for European cards, it becomes evident that a business should thoroughly evaluate its pricing and cost structure before offering BNPL.
Despite the fees, BNPL services can be a good choice for all B2C businesses, especially new businesses that have yet to build trust or those with high shopping cart abandonment rates. However, it may not be a good option for B2C businesses with an average ticket size of £1,000 or higher, or those with lower profit margins. Furthermore, being denied credit by a BNPL payment provider after a soft credit check could harm the reputation of the business.
Invoice Factoring: Sell your invoice to a third-party
Invoice factoring is a financial service that can help businesses manage their cash flow by allowing them to receive payment for their outstanding invoices upfront. In the UK, invoice factoring providers typically charge a fee ranging between 0.5% to 5% of the invoice value.
The factoring company typically pays around 80-90% of the invoice amount upfront, with the remaining balance paid once the customer has paid the invoice in full. The factoring company will charge a fee for their services, which covers the cost of the factoring company managing the invoice and collecting payment from the customer.
Invoice factoring can be especially beneficial to B2B companies with long payment cycles or experiencing cash flow challenges. Companies can receive the funds needed to meet their obligations, pay bills, and grow their business without waiting for customers to pay their invoices.
However, it is critical for businesses to carefully evaluate the costs of invoice factoring and ensure that it is the right financing option for their particular needs.
B2B Finance: Offer Financing to your customer
Small business owners can attract and retain customers by offering flexible payment options, such as financing alternatives, which can be particularly convenient for business-to-business (B2B) transactions. By providing financing options, businesses can close deals and increase sales.
UK business owners have two options for offering financing services: either manage the financing themselves or partner with a third-party financing company to handle credit operations on their behalf. If a business chooses to work with a third-party financing company, it’s crucial to evaluate its customer service, credit rating requirements, and finance thresholds carefully to ensure the partner operates to their standards and helps the business achieve its goals.
Businesses wanting to provide financing services directly must register with the Financial Conduct Authority (FCA), regardless of the lending method used; like hire purchase options or credit facilities. The FCA registration process is relatively straightforward and can be completed online, but organisations must comply with the FCA’s strict rules and regulations to prevent the revocation of their finance license.
How to implement new financing options in your business and manage cash flow
In conclusion, managing cash flow is crucial for businesses, especially during uncertain economic times. Offering flexible payment options such as Buy Now Pay Later services, invoice factoring, and B2B financing can help organisations improve their cash flow while attracting and retaining customers.
However, it’s essential to carefully evaluate the costs and benefits of each financing option before making a decision. As a leading provider of accounting services, our team at AcuAccounts can assist in evaluating financing options and creating effective cash flow management strategies. Contact us today at info@acuaccounts.com or call us directly on 0203 907 9027 to learn more about our services and how we can help your business thrive.
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