The Autumn Budget 2025 has now been announced, bringing a wide range of tax, income and business-related updates that will affect individuals and organisations across the UK. With so many changes taking effect between 2026 and 2029, it’s important to understand how the Autumn Budget could impact your financial planning. In this blog, we break down the most relevant points in a clear, simple way and show how Accounts & Returns can support you every step of the way.
Wage and income updates
One of the biggest practical changes coming out of the Autumn Budget 2025 is the rise in the National Living Wage. From April 2026, it will increase by 4.1% to £12.71 per hour, alongside increases to the National Minimum Wage for younger workers. This is welcome news for employees but important for employers to factor into staff budgeting and payroll planning.
The Government also confirmed that income tax thresholds, including the Personal Allowance and higher rate threshold, will remain frozen until 2031. As these thresholds stay the same whilst wages rise, more people are likely to drift into higher tax bands over time.
Changes affecting households and families
A major social change announced in the Autumn Budget 2025 is the removal of the two-child limit for Universal Credit from April 2026. This will offer increased support to many low-income households and is considered one of the most wide-reaching welfare updates in recent years.
Inheritance tax thresholds will also remain fixed until 2031 and a new transferability rule for agricultural and business property relief will be introduced, allowing any unused £1million allowance to be passed between spouses or civil partners.
Business taxes and allowances
For business owners, the Autumn Budget 2025 brings several key updates:
- A new 40% First Year Allowance from January 2026
- Reduced writing-down allowances (from 18% to 14%) from April 2026
- Increased penalties for late Corporation Tax submissions from April 2026
- A move towards mandatory e-invoicing by April 2029
Additionally, dividend tax rates will rise from April 2026 and new separate property income tax rates will apply from 2027–28. These changes mean landlords and investors may see increased tax liabilities and should prepare early.
Fuel duty and vehicle updates
Fuel duty remains frozen with the 5p cut extended for five months, then gradually reversed during late 2026 and early 2027. Meanwhile, electric vehicle owners will face the new Electric Vehicle Excise Duty from 2028, charging drivers per mile.
These points are likely to affect businesses with fleets, delivery services or frequent travel — so planning ahead is essential.
Need advice on how the Autumn Budget 2025 affects you?
The Autumn Budget 2025 introduces a wide range of changes that businesses and individuals must adapt to over the next few years. With offices across the UK, Accounts & Returns offers expert support wherever you are — from Oxford and Warwick to Shirley, Fareham and beyond.
Whether you need help understanding new tax rates, restructuring your business, planning for changes to allowances or keeping compliant with evolving legislation, our experienced accountants are here to help.
Contact your nearest Accounts & Returns branch today and get expert guidance you can rely on.
