Autumn Budget 2025: Key Takeaways
The Chancellor, Rachel Reeves, has delivered the 2025 Autumn Budget. The primary focus of this year’s Budget, according to Rachel,…
New Minimum Wages
£8.00
+6% Increase for U18’s & Apprentices
£10.85
+8.5% Increase for 18-20
£12.71
+4% Increase for Over 20s
New Minimum Wages
£8.00
+6% Increase for U18’s & Apprentices
£10.85
+8.5% Increase for 18-20
£12.71
+4% Increase for Over 20s
Business Compliance & Tax Timeline
January 2026
Capital Investment: 40% First-Year Allowance introduced for main-rate assets
April 2026
Employment Costs: National Living Wage rises to £12.71; Writing Down Allowances drop to 14%
April 2027
Income Tax Reform: Dividend, savings, and property income tax rates increase by 2%
April 2028
Vehicle Tax: New mileage-based tax for EVs (3p/mile) and hybrids (1.5p/mile)
April 2029
Pension Strategy: NICs relief on salary sacrifice pensions capped at the first £2,000
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.
Andy Steele, Founder 360, Chartered Accountants
Business Compliance & Tax Timeline
January 2026
Capital Investment: 40% First-Year Allowance introduced for main-rate assets
April 2026
Employment Costs: National Living Wage rises to £12.71; Writing Down Allowances drop to 14%
April 2027
Income Tax Reform: Dividend, savings, and property income tax rates increase by 2%
April 2028
Vehicle Tax: New mileage-based tax for EVs (3p/mile) and hybrids (1.5p/mile)
April 2029
Pension Strategy: NICs relief on salary sacrifice pensions capped at the first £2,000
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.
Andy Steele, Founder 360, Chartered Accountants
Fully Funded Training for SMEs
From the 1st August 2026, SMEs across the UK will be eligible for fully funded training for apprentices under the age of 25.
Andy Steele describes this as a huge U-turn on changes to apprenticeship funding in a previous budget.
Fully Funded Training for SMEs
From the 1st August 2026, SMEs across the UK will be eligible for fully funded training for apprentices under the age of 25.
Andy Steele describes this as a huge U-turn on changes to apprenticeship funding in a previous budget.
2026 vs 2025
2026 |
2025 |
|
|---|---|---|
Capital Allowance (First-Year) |
40% |
0% |
Writing Down Allowance (Main Rate) |
14% |
18% |
Employee Ownership Trust Relief |
50% |
100% |
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Top Tips:
Calculate the impact on new wage costs
Research into hiring apprentices
Landlords should speak to their accountants about structuring their affairs
Always speak to your accountant if you are unsure on a change
Previous budget information
Autumn 2026 Budget FAQs
The Autumn Budget 2026 will be held on Wednesday 28 October 2026. The Chancellor usually starts speaking at around 12:30pm, straight after Prime Minister’s Questions, and the speech normally lasts about an hour.
The Autumn Budget will be delivered by the Chancellor of the Exchequer, John Healey. He was appointed Chancellor in July 2026 after Andy Burnham became Prime Minister, so this will be his first Budget.
With a new Prime Minister and Chancellor in place, this Budget will be our first proper look at how the new government plans to pay for its priorities. The Prime Minister has said the government will stick to its manifesto promise not to raise the rates of income tax, employee NI or VAT, so any extra money is likely to come from elsewhere, such as frozen thresholds or changes to allowances and reliefs.
We’ll probably hear what the National Minimum Wage will be increasing to, and whether the government’s VAT reduction for family and children’s activities in Summer 2026 was a success. Entrepreneurs will have their fingers crossed that Business Asset Disposal Relief isn’t scrapped. Employers will be hoping for some help with Employers NI, particularly for younger workers.
Unlikely, although major changes to taxes like Capital Gains Tax or Stamp Duty often come in from midnight on Budget day to stop people timing transactions to avoid increases.