Autumn Budget 2025 Day One Guide: What Changed and What To Do This Week
- bes Accountancy Services
- Nov 9
- 7 min read
Budget week is when small and medium sized businesses either protect margin or give it away. Decisions about pricing, payroll and purchases often need to change immediately after the Budget. This day one guide from Bes Accountancy gives you a clear summary framework and a practical checklist for action in the first seven days. We are a London based accounting company serving clients across the United Kingdom. Our team, led by Besnik Vata, director of Bes Accountancy, specialises in fast, plain English implementation on Xero and QuickBooks so your decisions turn into tidy records and correct filings.
Free tailored advice,
Call our director Besnik today: 07816264205
Why This Matters Today
The Chancellor will deliver the Budget on Wednesday 26 November 2025. Measures often start on the day, on the next 6 April, or at specified transition dates. The sequence matters because it drives cash flow, VAT position, payroll settings and tax instalments. Companies that act in the first week protect margin, reduce rework and avoid penalties. The date is confirmed by HM Treasury, so plan to review and implement changes as soon as the Red Book is released.
Common pitfalls to avoid this week
Assuming nothing changed and delaying payroll or price updates. Missing evidence for capital allowances and then struggling to claim. Ignoring VAT threshold movements and scheme choices. Failing to adjust director salary and dividends for the new allowance and rates. Overlooking quarterly instalments for corporation tax as profits rise. Each of these creates tax leakage and operational rework later. For example, full expensing is available to companies for qualifying plant and machinery, so the timing of orders, delivery and commissioning matters.
“Day one is about speed with control. Capture the measures that affect you, set dates, update systems, and keep the evidence. That is how SMEs avoid leakage and stay bank ready.” Besnik Vata, director of Bes Accountancy, a London based accounting company.
Want to dive deeper into accounting for businesses?
Read our related blog, where we provide a full guide to submitting your File Your Tax Return Early.
Day One Summary of Changes to Cover
Below is the structure we use in client memos on Budget day. Complete it with the confirmed figures from the Red Book and GOV.UK guidance, then implement.
Corporation tax and payments.
Confirm your rate, any marginal relief position, and whether rising profits bring you into quarterly instalments. Update your payment timetable so cash is set aside in advance. The instalments regime requires two payments before year end for larger companies, so do not leave this to chance.
Capital allowances for companies.
Full expensing provides a one hundred per cent first year deduction on qualifying main rate plant and machinery that is new and unused. There is a fifty per cent first year allowance for special rate assets. Evidence of purchase date and bringing into use is essential. Keep invoices and delivery or installation records. Cars are excluded from full expensing.
VAT threshold and scheme choice.
Check whether any announcements change the £90,000 registration threshold or the £88,000 deregistration threshold from April 2024. If the threshold moves, model the effect on pricing and customer contracts, and decide on standard, cash or flat rate schemes as appropriate. Use your rolling twelve month turnover, not just year end figures.
Payroll and profit extraction.
Confirm income tax bands and NIC rates, then re model the salary and dividend mix for directors. The dividend allowance remains very small, and dividend tax rates for 2025 to 2026 are 8.75 per cent, 33.75 per cent and 39.35 per cent depending on the band. Prepare dividend vouchers and minutes if you change the plan.
Reliefs for innovation and creative sectors.
If you claim R and D or creative reliefs, confirm any updates to qualifying costs or compliance steps. Align project records and engagement letters on day one to avoid a scramble at year end.
Business rates and local support.
Capture any extensions to small business rate relief or retail, hospitality and leisure support and update forecasts.
Making Tax Digital and penalties.
Confirm any penalty regime changes for late filing or late payment that apply to VAT and Income Tax. The points based late submission system and staged late payment penalties apply to many taxpayers already, so make sure your calendar and reminders reflect any changes.
Day One summary table
Measure | What changed | Effective from | Who is affected | Immediate action |
Corporation tax payments | Confirm rates and any instalments triggers | As announced | Profitable companies nearing thresholds | Update payment calendar, brief cash flow owner. |
Capital allowances | Full expensing and 50 per cent first year allowance scope confirmed | As announced or ongoing | Companies buying kit and fit outs | Verify asset category, retain invoices and commissioning evidence. |
VAT threshold and schemes | Confirm threshold and scheme options | As announced | Growing SMEs and contractors | Model turnover, choose scheme, update pricing if needed. |
Payroll and dividends | Confirm bands, NIC and dividend allowance context | 6 April 2026 or earlier if stated | Directors and shareholders | Re model salary versus dividend and prepare paperwork. |
MTD and penalties | Confirm any changes to regimes | As announced | VAT and ITSA taxpayers | Align filing calendar and reminder workflow. |
Figure 1:
BES Accountancy uses tools like Xero and QuickBooks to help clients prepare property tax forecasts, file returns, and avoid costly surprises.
Actions To Take This Week
Finance and tax.
Lock a simple one page impact summary for each entity, then update your payment calendars for corporation tax, PAYE and VAT. If profits are higher, check quarterly instalment exposure and plan cash set asides now. Run a quick sensitivity on interest costs so there are no shocks.
VAT and pricing.
Reassess your VAT registration position and scheme choice. If any threshold change was announced, update price lists, quotes and contracts so margin does not slip. Share a short customer note if VAT status changes on new invoices from a specific date. Reference the official VAT threshold change published by the government to add credibility.
Payroll and extraction.
Update payroll software codes, director settings and benefits in kind capture. Re model salary versus dividend for the current and next tax year using the confirmed dividend rates. If you decide to alter the dividend pattern, prepare vouchers and board minutes the same week so the paper trail is complete. HMRC guidance shows the current dividend rates that apply above the allowance.
Claims and evidence.
Prepare files for capital allowances, including invoices, delivery and commissioning evidence, and photos or certificates where relevant. The GOV.UK guidance for full expensing is your benchmark. If you are planning a fit out or a kit refresh, align delivery and bringing into use with your forecast so the claim lands in the right period.
Compliance and penalties.
Check the late submission and late payment regimes that apply to your VAT and Income Tax returns. Set calendar reminders and add a weekly check that all digital records required under Making Tax Digital are complete and posted.
Simple week one checklist
Action, owner, due date, evidence required, status. Keep this visible to the board and review it in a fifteen minute stand up each day until all tasks are closed. The discipline saves tax and avoids rework.
Follow us on our socials and stay updated with expert tax tips, important deadlines, and practical advice to keep your finances on track
Hidden Costs If You Wait
Delay has a price. Missing the window to order and commission assets can turn a full expensing claim into a smaller pool deduction. A late or weak evidence file will slow a claim and increase enquiry risk. Ignoring a movement in the VAT threshold can lead to backdated registration, penalties and an uncomfortable customer conversation about price. Forgetting to update payroll codes can create net pay errors that take hours to unwind. The points based penalty regime for late submission is unforgiving, so file on time and pay on time to avoid compounding costs.
“Our view is simple. The first week after the Budget belongs to owners who act. We give you the numbers, the checklist and the paperwork so you can keep selling while we keep your ledger clean.” Besnik Vata, director of Bes Accountancy.
How BES Helps
Rapid review.
We issue a clear day one memo that maps what changed and the dates that matter for your business.
Planning sprints.
We run short sessions on VAT threshold planning, capex timing for full expensing, director extraction strategy, and R and D readiness where relevant.
Delivery.
We update payroll, post journals, prepare dividend vouchers and minutes, assemble claim packs, and submit elections and returns to HMRC. Our Xero and QuickBooks certification keeps your data accurate and accessible.
Reporting.
You receive refreshed forecasts, a payment calendar and bank ready management reports for lenders, landlords and investors.
Speak to a qualified accountant for tailored advice.
Call for a free quote: 07816264205 | Email for a free quote: Info@bestax.co.uk
FAQ:
When exactly is the Budget and why does the day matter?
The Budget is on Wednesday 26 November 2025. Some measures begin the same day. Others start on 6 April. Your timing on orders, payroll changes and VAT status should match those effective dates.
What are the current dividend tax rates I should model?
Plan using 8.75 per cent, 33.75 per cent and 39.35 per cent for dividend income above the allowance, subject to the confirmed Budget. HMRC helpsheets and guidance show these rates for 2025 to 2026.
How do I handle capital allowances on new equipment?
Companies can claim full expensing for qualifying main rate plant and machinery that is new and unused, and a fifty per cent first year allowance for special rate assets. Keep invoices and commissioning evidence and plan delivery dates carefully.
What VAT threshold should I use for planning?
The government increased the registration threshold to £90,000 from April 2024. Check whether the Budget announces a change. Model your rolling turnover and select the most suitable scheme for your cash profile.
What happens if I do nothing this week?
You risk tax leakage from missed windows, cash flow shocks from unplanned VAT or PAYE, penalties under the late submission and late payment regimes, and operational rework in payroll and bookkeeping. Lenders and investors also prefer predictable, well documented numbers, which is harder to deliver if you wait.
About Bes Accountancy
Founded in 2020 and based in London, Bes Accountancy provides bookkeeping, payroll, VAT, financial accounting and accounts preparation for sole traders and partnerships. We support businesses across the United Kingdom with Xero and QuickBooks. Our core values are availability, efficiency and trust. We focus on practical steps, clear documents and correct filings so owners can keep their attention on growth.
Internal resources to explore next
Comments