No panic required, just a little forward planning.
Budgets often come with big headlines and even bigger uncertainty. When you’re already busy running a business, contracting, or managing your own finances, it’s not always obvious which changes actually affect you, or whether you’re meant to do anything right now.
The good news? This year’s Autumn Budget delivered no shocks or overnight rule changes. Adjustments are gradual and phased over several years, which gives you time to plan sensibly and stay in control.
Below is a straightforward summary of the key points, what they mean in practical terms, and the smart steps to consider next.
The Key Changes
1) Income tax thresholds frozen until 2030/31
Personal allowance and higher-rate thresholds remain unchanged for longer.
What this means for you:
Even without tax rates increasing, more of your income may drift into higher bands over time. If you’re a director or contractor receiving a blend of salary and dividends, thoughtful income planning is increasingly important.
2) Dividend tax rising from April 2026
Dividend tax rates increase by 2 percentage points.
What this means for you:
If you extract profit via dividends, your take-home pay may dip slightly from April 2026. It’s a good time to review your mix of:
- salary
- dividends
- pension contributions
Small adjustments can make a meaningful difference.
3) Higher tax on non-salary income from April 2026
Tax is increasing on dividends, savings interest and property income.
What this means for you:
This could raise your personal tax bill if you:
- own buy-to-let property
- hold substantial cash savings
- take larger dividends
Planning ahead gives you options.
4) Salary sacrifice pension NI relief capped from April 2029
Only the first £2,000 of salary sacrifice pension contributions will remain NI-free. Contributions above that will attract NI.
What this means for you:
This will affect some director and contractor pension strategies, but there is plenty of time to adjust.
Important: normal employer and personal pension contributions are not affected; only those via salary sacrifice.
5) Capital Gains Tax rules tightening
CGT reliefs are narrowing gradually.
What this means for you:
If you’re considering selling a business, restructuring, or bringing in a partner, tax planning is becoming more important. Early advice can make a significant difference to your net outcome.
6) New high-value property charge from April 2028
A new annual charge will apply to residential properties worth over £2 million.
What this means for you:
This is only relevant if you own, or plan to buy, higher-value property. Factor it into long-term affordability if it’s on your horizon.
7) Minimum wage increasing from April 2026
From 1 April 2026:
- National Living Wage (21+): £12.71
- Age 18–20: £10.85
- Under 18s & apprentices: £8.00
What this means for you:
If you employ staff at or near these levels, build higher payroll costs into next year’s budget. Wage increases often create knock-on effects across pay structures, so planning early is wise.
8) Electric vehicle taxes from 2028
EVs will move to a pay-per-mile road charge.
What this means for you:
If you’re considering electric company vehicles, include the future running costs in your long-term calculations. EVs still offer benefits, but the numbers will shift slightly.
A sensible next step
There’s nothing here that demands urgent action — but it is a good moment to:
- Review how you pay yourself
- Budget for wage increases if you employ staff
- Plan early if you’re considering a sale, restructure or major change
- Check long-term costs before committing to property or EV investments
And remember: you don’t need to work through all of this alone.
A Broadbench adviser is always on hand to help you understand your options, and to discuss not only inheritance tax planning, but also your wider protection and mortgage needs. Whenever you’re ready, we’re here to support you.
Many thanks to Lucy at Simplex Accounting for pulling this blog together for us.
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