The Autumn Budget 2025 has now been announced for the 26^th November.

For SMEs, it’s a key moment. Here are the areas most likely to affect business owners.

VAT threshold

The VAT registration threshold 2025 is £90,000. Raising it has been discussed as a way to ease pressure on smaller firms. For VAT-registered businesses, the effect would be indirect, but it could change competition in some sectors.

Dividend Tax

Dividend tax rates could be reformed to align tax rates more closely with income tax rates. There are also discussions around removal of the dividend allowance altogether for high earners with both measures impacting business owners and individual taxpayers alike. 

National Insurance

National Insurance contributions 2025 remain a likely target. Any rise in employer costs would put pressure on payroll budgets. There is also speculation that rental income for private landlords could be brought into NIC, which could have wider implications for landlords.

Inheritance Tax

Inheritance Tax 2025 is already due for reform, with reliefs tightening from 2026. More changes may come, including restrictions on lifetime gifts or further freezes on thresholds, which would affect succession planning.

Property taxes

The government is reviewing property taxation. Options being considered include:

• Higher council tax bands for expensive homes.
• Replacing stamp duty with an annual levy.
• Capping capital gains tax exemptions for high-value main homes.

These would all have implications for property owners and buyers.

Other areas under review

• Pensions: possible changes to tax relief and levies on large funds.
• Capital Gains Tax (CGT): potential rate increases or smaller allowances.
• ISAs: a review of the cash ISA limit and balance between cash and equities.
• Business rates: continued reform, with larger sites and warehouses likely to see higher bills.
• Extend to the freeze on income tax thresholds beyond the 2028 period.
• Significant accounting changes are also coming with UK GAAP 2026 updates, which you should start planning for now.

What SMEs can do now

Whilst the detail won’t be clear until the Autumn Budget 2025, Economists are predicting tax rises to cover the Chancellors shortfall in tax receipts. Business owners should:

• Review profit extraction policy prior to the budget date.
• Capital Gains Tax planning – pre budget disposals could lock in current CGT rates.
• Review company structure ensuring optimisation prior to the budget date.
• Revisit inheritance and succession planning – does this accelerate retirement plans for shareholders?

The Autumn Budget 2025 will shape the tax landscape for the year ahead.