As we approach the final stretch of 2025, now is the ideal time for business owners, landlords and individuals to review their finances, strengthen cash flow and prepare for the year ahead. At HJ Accountants, we believe clear, practical advice is essential for confident decision-making, especially following the introduction of the Autumn Budget 2025, which is now law and brings several important changes.
Autumn Budget 2025: Key Changes You Should Be Aware Of
The Autumn Budget confirms a number of tax and financial measures that will affect business planning, personal tax strategies and long-term investment decisions over the coming years. One of the most significant changes is the continued freeze on income tax and National Insurance thresholds, including the personal allowance and higher-rate bands, which will now remain fixed until 2031.
As incomes rise, this freeze increases the impact of fiscal drag, meaning more individuals and business owners will pay higher levels of tax without any increase in headline rates.
Dividend, Savings and Property Income Tax Updates
Further changes are on the way for dividend, savings and property income. From April 2026, tax on dividend income will increase by two percentage points, with the ordinary rate rising to 10.75% and the higher rate to 35.75%. The additional rate remains unchanged.
From April 2027, savings and property income will also be subject to a two-percentage-point increase across the basic, higher and additional tax bands. These changes are likely to affect dividend planning, investment returns and overall profitability, reinforcing the need for forward planning.
Business Rates and the Wider Financial Outlook
The Budget also introduces new business-rates multipliers. Properties with higher rateable values may see increased costs, while retail, hospitality and leisure properties will benefit from reduced multipliers aimed at supporting high-street businesses.
When combined with frozen tax thresholds and changes to passive income taxation, these measures highlight the importance of reviewing business footprints, property-related costs and long-term financial strategies.
Wages and ISA Changes on the Horizon
From April 2026, the National Living Wage will increase to £12.71 per hour for workers aged 21 and over, with 18–20-year-olds seeing a rise to £10.85 per hour. This is a key consideration for payroll planning and budgeting.
Looking ahead to April 2027, changes to Cash ISA rules will affect how individuals save and invest. While the overall ISA allowance remains £20,000, those under 65 will be limited to £12,000 in a Cash ISA, with the remaining allowance required to be invested elsewhere. Those aged 65 and over will see no change.
Key Compliance Reminders as Year-End Approaches
As the year draws to a close, HMRC continues to focus on digital-only VAT submissions, strict late-filing penalties and accurate payroll reporting for every pay period. Ensuring records are up to date now can prevent unnecessary penalties and stress later.
Planning Staff Christmas Events the Tax-Efficient Way
Businesses hosting staff Christmas events should remember the annual staff event exemption. Up to £150 per person per tax year can be treated as a tax-free benefit, provided the event is open to all staff and the limit is not exceeded. Even going £1 over makes the full amount taxable, so careful planning is essential.
Finishing 2025 Strong and Preparing for 2026
As we are now in December, it’s worth reviewing whether bookkeeping and VAT records are up to date, payroll submissions are accurate and management accounts are providing clear insight. Proactive action now leads to better decisions and a smoother start to 2026.
HJ Accountants goes beyond compliance, offering structured support and practical advice to help businesses adapt to change, stay compliant and plan with confidence. If you’d like a year-end review, tailored advice on the Autumn Budget or support with cash-flow planning, our team is here to help you finish the year strong and move into 2026 fully prepared.