Autumn Budget 2025: What the Latest Changes Mean for You and Your Business
The Autumn Budget 2025 has now been delivered, and like every year, it brings a mix of tax changes, updates to allowances and new rules that affect both individual taxpayers and business owners across the UK.
At BAS, we’ve taken a close look at the announcements most likely to impact our clients – whether you’re running a limited company, managing payroll, filing a personal tax return, or simply planning ahead for the year.
Understanding what’s changing and what the Autumn Budget 2025 means for you
The government has confirmed that Income Tax thresholds will remain frozen until April 2031. For many people, this means more of their earnings may fall into higher rate bands over time. With salaries rising but allowances standing still, this measure will quietly increase tax liabilities for many taxpayers.
Dividend tax rates will also rise from April 2026, which is particularly relevant for limited company directors who take a combination of salary and dividends. These changes may impact the efficiency of current remuneration strategies and clients who rely on dividends should be aware of the higher rates that will soon apply.
For employers and anyone running payroll, the National Minimum Wage and National Living Wage will increase from April 2026. This is an important update for small businesses, where staffing costs already make up a significant proportion of overheads. So, careful budgeting will be required to manage this increase in costs. If we manage your payroll, we will implement all required updates once formal guidance is released.
The budget also introduced a future cap on salary sacrifice pension contributions, cutting the full National Insurance relief after the first £2,000 per year. This may affect higher earners or employees who use pension contributions as part of their tax planning strategy.
One area clients often ask about is Corporation Tax. The good news is there are no changes to Corporation Tax rates: the main rate remains at 25% and the small profits rate stays at 19%. This provides some stability for limited companies at a time when other areas of taxation are tightening.
What still needs clarification…
Although the Chancellor has set out the Autumn Budget 2025 and what is changing, the government has not yet released the technical details behind how some measures will be implemented. Until we have full guidance, it is particularly challenging to provide definitive advice on how certain rules will apply in practice.
When the technical details have been published, we will review everything carefully and provide tailored guidance where it affects your business or personal tax position.
How BAS will help you
If you are a BAS client and we manage your payroll, company accounts, personal tax return, or business tax compliance, you do not need to take any action at this stage. We will update calculations, apply new thresholds and guide you through any relevant planning opportunities as more information becomes available.
For clients who prefer proactive planning, we recommend booking a review call or meeting in early 2026 to discuss the impact of frozen tax thresholds, dividend rate changes and potential allowances adjustments.
Why local expertise matters
The Budget affects everyone differently and working with a local accountant who understands your business, your goals and your wider financial picture can make all the difference. Whether you’re a limited company owner, a sole trader or an individual preparing your personal tax return, the right advice delivered at the right time helps you stay compliant and tax-efficient.
At BAS Associates, we pride ourselves on combining clear guidance with hands-on support – because tax shouldn’t be confusing, and financial planning shouldn’t be stressful.
Stay informed
You can download our full Autumn Budget Summary here.
If you have any general questions, you’re always welcome to get in touch. Contact us here.
Once the government releases the remaining information, we will update all relevant clients directly.
