Business News Round-Up: What the Latest Updates Mean for Your Business

Welcome to our fortnightly business round-up—your monthly digest of the key developments affecting UK businesses. This includes major announcements from the Autumn Budget, updates on employment costs, regulatory changes, and economic trends that business owners need to be aware of.

If you would like to discuss how any of these updates impact you or your business, please get in touch. We’re here to help you stay compliant, prepared and ahead of the curve.

Autumn Budget 2025: What You Need to Know

This year’s Budget made headlines before it was even announced, due to an accidental early release of the OBR’s report. But despite the unusual reveal, the policies themselves carry significant long-term implications.

Here are the measures most likely to affect business owners.

 

1. Higher Taxes for Property Owners and Savers

From 6 April 2027, the government will introduce new, separate income tax rates for property and savings income, each increased by 2 percentage points.

New rates for 2027/28:

Band	Property Income	Savings Income
Basic (£1–£37,700)	22%	22%
Higher (£37,701–£125,140)	42%	42%
Additional (over £125,140)	47%	47%

 

Additionally, owners of property worth over £2 million will face a new mansion tax—a surcharge of £2,500 to £7,500 on top of existing council tax.

Combined with previous measures such as the end of the furnished holiday letting regime and higher stamp duty on second homes, many landlords will understandably be reconsidering the viability of letting property.

If you’re unsure how this affects you, we can help you assess your options and future tax exposure.

 

2. Dividend Tax Rate Increases

From April 2026, dividend tax will rise:

Basic rate: 10.75%

Higher rate: 35.75%

This raises important questions for company owners about tax-efficient profit extraction. If you rely on dividends or are considering incorporation, now is the time to plan ahead.

 

3. Rising Payroll Costs from April 2026

The new National Minimum Wage rates take effect from 1 April 2026, including:

21 and over: £12.71 (up 4.1%)

18–20: £10.85

Under 18 / apprentices: £8.00

With increases of up to 8.5% for younger workers, employers should prepare for a sizable uplift in payroll costs. Staff earning above minimum wage may also expect knock-on increases.

Budgeting early will be essential—especially if you plan to expand your team.

 

4. Salary Sacrifice Pension NIC Cap from 2029

Currently, employer NI savings apply to all pension contributions made via salary sacrifice.

But from 6 April 2029, the NI exemption will be capped at £2,000 per employee. Contributions above that will still receive tax relief, but will attract both employer and employee NICs.

Businesses offering enhanced benefits packages should consider how this affects total reward planning.

 

5. Inheritance Tax Relief Changes for Business Owners & Farmers

From April 2026:

100% relief for agricultural and business property will be capped at £1 million.

Excess value will qualify for 50% relief.

Positive change: Unused reliefs can be transferred to a surviving spouse or civil partner—potentially allowing couples to pass on up to £3 million tax-free.

Careful estate planning will be essential, particularly around the transition period.

 

6. Changes to Capital Allowances

Key updates include:

Writing Down Allowance (main pool) dropping from 18% to 14% from April 2026.

Introduction of a new 40% First-Year Allowance (from Jan 2026), though this will only apply where AIA or other FYAs are unavailable.

100% FYAs for electric vehicles and charging points extended to April 2027.

Planning ahead could help maximise reliefs before rates reduce.

 

7. Business Rates Reform for Retail, Hospitality & Leisure

From 1 April 2026, retail, hospitality and leisure businesses with rateable values below £500,000 will benefit from lower business rates multipliers, replacing the current 40% RHL relief.

Higher-RV properties will see increased multipliers to fund the change.

 

8. Mandatory Electronic Invoicing from 2029

The government has confirmed that all VAT invoices must be issued electronically from 2029.

Real-time reporting is being considered but will not be introduced at the same time.

Businesses should begin reviewing their accounting systems to ensure they support structured e-invoicing formats—particularly when planning future software investments.

 

Other Key Business Updates

National Minimum Wage Increases Confirmed

The new statutory wage increases for April 2026 mean:

2.4 million workers will see an increase

Younger workers receive the largest uplift as the UK moves toward a single wage rate

Employers should budget early, review pay structures, consider productivity, and model cost impacts

If you'd like help forecasting the financial effect, we can support you.

 

HMRC Fixes Class 2 NIC Error on SA302 Forms

Some self-employed taxpayers filing 2024/25 returns early were incorrectly shown as owing Class 2 NIC, despite the threshold rules introduced this year.

The issue has now been fixed:

Correct SA302s have been issued since 29 September 2025

HMRC will automatically correct earlier returns

No action is required from taxpayers

 

CMA to Study the Private Dentistry Market

The Competition and Markets Authority may launch a study into private dental services following a request from the Chancellor.

The study is expected to examine:

Competition between providers

Pricing transparency

Consumer choice

Value for money

With private dentistry becoming increasingly essential due to NHS access challenges, this review may shape future regulation and pricing models in the sector.

 

HSE: 1.9 Million Workers Experienced Work-Related Ill Health in 2024/25

The Health and Safety Executive has released its annual statistics:

1.9 million workers suffered work-related ill health

964,000 cases were stress, depression or anxiety

40.1 million working days lost

124 worker fatalities and 680,000 non-fatal injuries

Mental health continues to be the biggest challenge for UK businesses.

 

Rail Fare Freeze Until 2027

Regulated rail fares in England will be frozen until March 2027—the first multi-year freeze in three decades.

This covers:

Most season tickets

Many off-peak long-distance fares

Flexible city-travel products

Businesses with regular rail travellers may benefit from increased cost certainty.

 

Final Thoughts

Between tax increases, employment cost pressures, new compliance requirements and broader economic shifts, the landscape for UK businesses continues to evolve. The coming years will require careful planning and proactive decision-making.

If you’d like personalised guidance, from payroll planning to tax efficiency or budgeting for 2026 and beyond, we’re here to support you.

 

December 2025