The Headlines

• Income tax thresholds frozen until 2031 – more people will gradually pay higher rates.
• Taxes on property, dividends, and savings income rising – narrowing the gap between work and investment income.
• New council tax surcharge on high-value homes – properties over £2m face annual charges from 2028.
• National Insurance relief capped – pension salary sacrifice limited to £2,000 per year from 2029.
• VAT e‑invoicing mandatory from 2029 – digital compliance is coming.
• Capital allowances reshaped – new 40% first-year allowance, but reduced writing-down rates.
• HMRC powers strengthened – tougher penalties and stricter compliance rules.

For Landlords & Property Investors

• Higher property tax rates will reduce rental yields.
• The new high-value council tax surcharge adds extra costs for premium properties.
• Mortgage interest relief restricted to 22% means tighter margins.

For Business Owners

• Apprenticeship and youth training schemes offer opportunities to bring in fresh talent.
• Compliance costs will rise with VAT e‑invoicing and stricter HMRC enforcement.
• Capital allowances changes mean planning investment carefully to maximise relief.

For Employees & Families

• Frozen thresholds mean less take-home pay over time.
• Pension salary sacrifice NIC relief capped, reducing tax efficiency.
• Benefit reforms (like scrapping the two-child cap) may offset costs for some households.

Our Guidance

At MJ Support & Co, we recommend:

• Reviewing your property portfolio to understand the impact of higher tax rates.
• Planning cash flow adjustments ahead of frozen thresholds and pension relief caps.
• Preparing for digital VAT compliance now, to avoid last-minute disruption.
• Exploring apprenticeship opportunities to benefit from government-funded training.

In summary: The Autumn Budget 2025 is about raising revenue while tightening compliance. Whether you’re a landlord, business owner, or employee, these changes will affect your finances. Proactive planning is essential to stay ahead.