The Autumn Budget has now been released, bringing a fresh round of tax changes, allowances, and incentives that will affect small businesses, sole traders, landlords and limited companies over the next year. Below is a simple, jargon-free breakdown of the key updates that matter most to our clients.

 

✅ National Insurance – More Take-Home Pay for Workers & Self-Employed

The Government is continuing its push to reduce NI costs for individuals:

• Employee NI: A further cut to the main rate, giving employees slightly more net pay each month.
• Self-Employed NI (Class 4): Another small rate reduction, improving profitability for sole traders.
• Class 2 NI: The Government has confirmed that Class 2 remains abolished.

What this means: If you’re self-employed or run a payroll, you should see lower NI deductions and improved take-home pay.

 

✅ Small Business Support & Growth Measures

Business Rates Relief Extended

Retail, hospitality and leisure businesses continue to receive relief for another year, helping shops, cafés, salons, and local service businesses manage rising costs.

Capital Investment Incentives

Full expensing remains in place, allowing limited companies to claim 100% tax relief on qualifying equipment and machinery purchases.

Great for trades, engineering, and service businesses upgrading tools or machinery.

✅ VAT Threshold Increase

The VAT registration threshold has been increased, giving small businesses more breathing room before needing to register.

• New threshold: £90,000 turnover
• Deregistration threshold: £88,000

This is especially helpful for sole traders, consultants, tradespeople and growing businesses.

 

✅ Personal Tax – No Major Changes but a Few Adjustments

The main income tax bands remain frozen, but the Budget included:

• A small uplift in the Personal Allowance in line with inflation.
• No changes to dividend tax rates.
• No changes to corporation tax (still at 19–25% depending on profit level).

✅ Support for Families & Working Parents

The Budget reaffirmed expanded childcare support:

• Additional free childcare hours for children aged 9 months+
• More funding for nurseries to increase local availability

This is helpful for clients juggling family life and self-employment.

 

✅ Property & Landlord Measures

• Mortgage Guarantee Scheme extended, helping first-time buyers.
• Minor adjustments to capital gains tax allowances, but no major reforms for landlords this time.
• Rules around holiday lets may be tightened in the coming year, but full details are pending.

If you manage rental properties or Airbnb units, keep an eye on future announcements.

🌟 What This Means for You

Overall, the Autumn Budget brings small tax cuts, modest allowances increases, and continued support for small businesses. While nothing dramatic has changed, there are still opportunities to reduce tax, plan ahead, and improve cash flow.

At A&J Accountants Ltd, we help businesses and individuals understand exactly how these updates impact their tax position — and how to take advantage of any reliefs available.

💬 Need help understanding how these changes affect you?

Whether you’re a sole trader, landlord, or small limited company, we’re here to guide you.

📞 07309 500225
📧 info@ajaccounts.co.uk
🌐 www.ajaccounts.co.uk

Clear advice. Straightforward support. Personal service that puts you first.