The Chancellor, Rachel Reeves, has delivered the 2025 Autumn Budget. The primary focus of this year’s Budget, according to Rachel, is “delivering on the priorities of the British people”, which involves cutting NHS waiting lists, cutting the national debt, and cutting the cost of living.
We’ve compiled a list of the most important takeaways from the 2025 Autumn Budget for businesses across the UK.
Will the minimum wage increase in 2026?
Yes, the National Minimum Wage will increase from 1st April 2026.
| Age / Category | Minimum Wage Rate (from 1st April 2026) | Percentage Increase from 2025 |
| Apprentices |
£8.00 per hour |
+6% |
| Under 18 |
£8.00 per hour |
+6% |
| 18-20 |
£10.85 per hour |
+8.5% |
| Over 20 |
£12.71 per hour |
+4% |
360 Accountant’s Andy Steele says:
Businesses should calculate the impact on wage costs as a matter of urgency and decide on a strategy to minimise impact on the bottom line.”
Will there be changes to ISAs in 2027?
In a bid to encourage more investment, the Chancellor has announced there will be new restrictions to the amount of money that can be saved tax-free in a cash ISA. The cash limit will be reduced from £20,000 to £12,000. The lost £8,000 will be available to be placed in investments.
This change doesn’t apply to any one over 65.
We recommend you speak to an independent financial adviser (IFA) before making any further contributions to ISAs.
New Funding for SMEs
SMEs across the country will be eligible for fully-funded training for all employees under 25.
360 Accountant’s Andy Steele says:
This appears to be a U-turn on changes to apprenticeship funding in a previous budget. If you are considering employing an apprentice or young person, you should research whether or not you will qualify and whether or not the courses are partly or fully funded.”
Higher Corporation Tax
Some Capital Allowances will be reduced from 18% to 14% from April 2026. This change could mean higher Corporation Tax bills for some companies.
360 Accountant’s Andy Steele says:
Businesses that are concerned about this change are encouraged to talk to their accountants about the timing of capital expenditure.”
Changes to Rental, Dividend & Savings Income
From April 2026, there will be a +2% increase on tax for any dividend income.
From April 2027, there will be a +2% increase on any savings or rental income.
360 Accountant’s Andy Steele says:
If you are a landlord and are concerned about how this will affect you, we recommend speaking to your accountant about structuring your affairs in the most tax efficient manner.”
Changes to Electric & Hybrid Vehicles
Driving an electric vehicle will become more expensive from April 2028. Electric vehicle (EV) drivers will be charged 3p per mile, and hybrid vehicles will be charged 1.5p per mile on top of Vehicle Excise Duty.
Council Tax Surcharge for Homes Worth More Than £2m
There will be a new ‘Annual Charge’ for anyone living in a home that’s worth more than £2m. This tax surcharge will come into effect from April 2028.
There will be four price bands for this surcharge. We know at the moment that if a property is worth £2m, the surcharge will be £2,500, and if a property is worth over £5m, the surcharge will be £7,500.
This change is being referred to as the ‘Mansion Tax’, but may also capture homes in expensive areas. It is estimated that this surcharge will be levied on around 100,000 properties, most of which are in the London and South East of England.
Other Autumn Budget 2025 Highlights
- Voluntary Class 2 National Insurance contributions will be removed from some people living abroad – please speak to your accountant if this applies to you.
- Changes to Salary Sacrifice from 2029 – if you use this, we encourage you to speak to your accountant to develop a strategy for efficient remuneration over the course of the next few years.
- New ‘National Licensing Framework’ will encourage councils to support late night venues and pubs.
- £1 in every £10 the government spends is on debt interest.
- Luxury vehicles will be removed from the Motability Scheme.
- Income tax and NIC thresholds remain the same until 2031.
- Income Tax and VAT rates remain the same until 2031.
- Bingo Duty removed from April 2026.
- Remote Gaming Duty increasing from 21% to 40% on 1 April 2026.
- Remote bets on UK horse racing will remain unchanged.
- Two child benefit cap will be removed from April 2026.
Have any questions? Please do get in touch with our team and they’ll be happy to help you.
