Autumn Budget 2025: What Small Businesses Need to Know
Watch the Autumn Budget 2025 Session On-demandThe Autumn Budget 2025 brought a wide set of updates for small businesses, from tax thresholds to investment incentives. To help you make sense of it all, Wenta hosted the Autumn Budget 2025 session, led by our experienced Business Advisors, Michael Martin and Michael Cheung. In this practical session, they explained the key changes, what they mean for you and how to plan ahead with confidence.
"For owner-managers, micro-ventures and social enterprises, the Autumn Budget might mean some further burdens over time, yet while there was mixed messaging about greener measures, particular sectors will benefit from tax reliefs and other incentives. To cut through the noise, take advantage of opportunities and book in for free advice - we'll help you to re-assess risks and ensure that your business plan, forecasts, pricing, marketing and business development are fit for purpose."
Michael Martin, Head of Net Zero and Advisor Team Manager at Wenta
Autumn Budget 2025 Q&A and Networking by Wenta
Hear directly from our advisors as they break down what these changes mean for your business.
"There are always two sides to the budget, with some agreeing and disagreeing with it. It is hard to satisfy everybody's needs. The budget is not as fearful as some businesses first thought. There are some good incentives for businesses as well as individuals. It seems the budget was set so we all contribute. Businesses should try to focus on their operating budgets and look at ways to innovate to give themselves a strategic advantage. Depending on future performance of the country’s economic situation there could be amendments to the budget."
Michael Cheung, Net Zero and Business Advisor at Wenta
Key Announcements
Key tax thresholds frozen until 2030–31
The income tax personal allowance, higher-rate threshold and additional-rate threshold all remain frozen at:
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Personal Allowance: 12,570
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Higher-Rate Threshold: 50,270
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Additional-Rate Threshold: 125,140
These will now stay in place for three years, one year longer than expected.
Employer National Insurance thresholds
Employer NICs thresholds will also be frozen for three years from 2028–29. This means planning ahead for staffing budgets becomes even more important for small businesses.
Procurement Act thresholds
Procurement thresholds will reduce slightly, meaning more small businesses may be able to access public-sector opportunities. This change continues the government’s focus on widening supplier participation.
40% First-Year Allowance from January 2026
A new 40 percent first-year allowance will apply to qualifying expenditure from 1 January 2026.
Alongside this change:
- Writing-down allowances (main rate) reduce from 19 percent to 14 percent.
- These changes apply from:
- 1 April 2026 for Corporation Tax
- 6 April 2026 for Income Tax
Sugar (milkshake) levy
The sugar threshold is reducing from 5 mg per 100 ml to 4.5 mg.
Food and drink businesses producing sugary drinks will need to review recipes, labelling and pricing strategies.
Tourism sector
Tourism policy responsibility will shift to regional Mayors in England, giving regions more control over how local tourism is supported.
Other Key Announcements
From April 2026:
Dividend tax increases by 2 percentage points for basic and higher-rate taxpayers.
National Minimum Wage
(April 2026): 12.71 per hour | Age 18–20 up 8.5 percent to 10.85 per hour
Business Rates:
Reduced for more than 750000 retail, hospitality and leisure properties.
Salary Sacrifice Pension Contributions:
NIC charge added from 2029 for under-65s, with a £2,000 cap.
Enterprise Tax Incentives:
Expanded eligibility to help scale-ups attract capital and talent.
Customs Duty Relief:
Removed by 2029 for goods valued at £135 or less imported into the UK.
Electric Vehicle Excise Duty (from April 2028):
EVs: 3p per mile | Plug-in hybrids: 1.5p
Employee Ownership Trusts (from November 2025):
Relief on disposals reduced from 100 percent to 50 percent.
Training Support:
Apprenticeship training for under-25s to be fully funded for SMEs.
Book your free one-to-one business advice session
If you would like support reviewing how the Autumn Budget affects your business, speak to one of Wenta’s advisors.
Autumn Budget 2025 Q&A and Networking by Wenta
Hear directly from our advisors as they break down what these changes mean for your business.