What the 2025 Autumn Budget Means for Your Business: A Clear, Simple Summary

The Chancellor’s Autumn Budget brought a long list of future-dated tax changes and policy updates — and while some measures offer welcome support, many business owners have told us they feel unsure about what really affects them now and what will change later.

At Contador Accountancy Services, we’ve broken down the announcements into plain-English guidance so you can see what matters for your business in the short term, and what you should start planning for over the next few years.

1. Business Rates Relief for Retail, Hospitality & Leisure

One of the clearest wins in this Budget is for high-street businesses.From April 2026, the government will introduce permanently lower business-rates multipliers for many retail, hospitality and leisure properties. Transitional protections will also cushion the impact of the 2026 property revaluation for businesses facing higher bills.

What this means for you:

• Shops, cafés, restaurants, bars, salons and leisure venues may see business rates reduced.

• Eligibility still depends on sector and property valuation — something we can review for you.

• Start planning now for the 2026 revaluation so there are no surprises later.

2. Investment Incentives to Support Growth

Businesses planning to invest will benefit from two key measures:

Annual Investment Allowance (AIA) stays at £1 million

This allows qualifying businesses to deduct the full cost of plant, machinery and equipment purchases — providing immediate tax relief.

New 40% First Year Allowance from 2026

A further incentive for companies to invest in new main-rate assets from January 2026.

Why this matters:If you’re considering upgrading equipment, expanding operations or improving production capacity, the tax environment continues to be supportive. Now is a good time to review your investment plans for the next two years.

3. Changes to Salary Sacrifice and Employee Benefits

The Budget announced a significant future change to pension salary-sacrifice arrangements.From April 2029, only the first £2,000 of salary-sacrificed pension contributions will be exempt from National Insurance. Any amount above that will attract NICs.

Impact:

• Employers using salary-sacrifice schemes will face increased NIC costs.

• Employees may see reduced take-home savings from higher pension contributions.

• Businesses should start reviewing remuneration structures in advance, especially for senior staff and high-earning employees.

This doesn’t need immediate action — but it absolutely requires forward planning.

4. Reliefs Winding Back for Business Owners Planning an Exit

A number of the Budget’s changes affect business owners who are thinking about selling or transferring their company.

Most notably, the relief available on sales to Employee Ownership Trusts (EOTs) has been cut, reducing the tax benefits previously enjoyed by owners transferring their business to employees.

If you’re considering succession planning or a future sale, it’s important to revisit your strategy in light of these changes so you understand the tax consequences.

5. Adjustments to Capital Allowances

While some incentives are strengthening, others are being tightened. For asset-heavy sectors, the main Writing Down Allowance will reduce from 18% to 14% from April 2026.

Combined with the introduction of the new First Year Allowance, this creates a more complex capital-allowance landscape — making timing more important than ever.

What Businesses Should Do Now

To keep things simple, here’s a quick checklist:

Short-term (this year):

• Review business-rates status and check if you qualify for RHL relief.

• Assess whether any planned equipment purchases could benefit from AIA.

• Begin conversations about future remuneration structures if you use salary sacrifice.

Medium-term (2026 onwards):

• Plan for the introduction of the First Year Allowance and the reduced WDA.

• Review succession, investment and exit plans in light of changing reliefs.

• Prepare for property-valuation changes in 2026 that could alter business-rates bills.