Autumn Budget 2025 – What It Means for You and Your Business
The Chancellor has delivered the Autumn Budget 2025, introducing significant tax changes for individuals, business owners, property investors and high earners. We’ve broken down what matters, how it affects you, and the actions you should take to stay compliant and financially secure.
At a Glance
How this Affects You
Actions You Should Take Now
How PML Accountants Can Help
At a Glance
The Budget focuses on raising revenue while boosting support for public services. Key measures include:
- Income tax thresholds frozen for at least 3 more years
- Pension salary sacrifice benefits reduced, impacting higher earners
- New taxes on savings, dividends and property income
- Higher property related taxes, particularly for high value homes and large commercial buildings
- Business rates relief for many small retail, hospitality and leisure businesses
- Fuel duty frozen until September 2026
- Two child benefit limit abolished
- Energy bill support adjusted, moving away from insulation scheme incentives
This Budget shifts the tax burden toward wealth, assets and investment income, while offering targeted relief for smaller businesses and lower income families.
How This Affects You
For Individuals and Families
- Income tax threshold freeze means more people will move into higher tax brackets through “fiscal drag”, even if their income only rises with inflation.
- Pension changes (reduced benefits from salary sacrifice schemes) may particularly impact higher earners who currently use pensions to reduce tax exposure.
- Savings and dividend tax adjustments may reduce net returns for those with investments outside ISAs.
- Household support: abolition of the two child benefit limit provides increased income to qualifying families, though rising costs may offset gains.
For Business Owners and Directors
- Business rates support for retail, hospitality and leisure may ease financial pressure for smaller businesses.
- Larger businesses or those with valuable commercial premises may experience increased rates or property based taxes.
- Payroll and pension impacts: employers using salary sacrifice pension schemes may face higher costs if these benefits become less tax efficient.
- Rising taxes on dividends and savings affect owners who pay themselves through dividends, requiring updated remuneration planning.
For Landlords and Property Investors
- Increases to property related taxes may reduce profitability, particularly for owners of high value homes or larger portfolios.
- Commercial property owners may see higher taxes tied to asset values.
- Net yields may shrink as taxes rise while mortgage costs remain elevated.
- Capital investment decisions may need reviewing in light of the new tax environment.
For High Earners and Investors
- Pension rule changes impact tax efficient long term wealth planning.
- New or increased taxes on dividends, savings, and wealth reduce returns on investment portfolios.
- Estate and wealth planning becomes more important for those with high value assets.
- Higher NIC and tax exposure may require a more sophisticated planning strategy.
Actions You Should Take Now
1. Review your pension and retirement strategy
Changes to salary sacrifice and pension tax relief mean your current approach may not be as efficient as before.
2. Reassess your tax position
Frozen thresholds and higher asset based taxes mean many will pay more, even without earning more.
3. Review business rates and operational costs
You may be entitled to relief, or you may need to plan for higher costs.
4. Property portfolio review
Now is the time to evaluate ownership structures, financing and long term yield expectations.
5. Update your cashflow and tax forecasts
Particularly important for SMEs to maintain profitability and compliance.
How PML Accountants Can Help
We’re here to guide clients through every change introduced in the Autumn Budget.
Our team can support you with:
- Personal tax planning
- Business tax strategy and forecasting
- Pension and payroll assessment
- Property tax analysis
- Investment and savings tax reviews
Every client’s situation is unique, speak to us for tailored advice.