Autumn Budget 2025 – What Small Businesses Should Expect
- bes Accountancy Services
- Sep 1
- 9 min read
If you run a growing business in London or anywhere in the UK, you are probably already asking what the Autumn Budget 2025 might mean for your taxes, payroll, and cash flow. In this guide, written for busy owners and directors, we set out what to expect from the Autumn Budget 2025, where small business tax changes UK are most likely to land, and how to prepare so you stay compliant and in control.
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Autumn Budget 2025, the timeline and what we already know
The Chancellor has confirmed that the Autumn Budget 2025 will take place on Wednesday 26 November. That date matters because it sets the timetable for new tax and allowance announcements, alongside fresh forecasts from the Office for Budget Responsibility. Expect the official documents and the OBR outlook on the same day.
For owners in construction, hospitality, and skilled services, the late November timing means you can still adjust year end plans, review salary sacrifice choices, and get filings aligned before the new calendar year. It also means there is time to review your software stack so your bookkeeping, VAT, and payroll are ready for any changes that follow.
“Budgets do not just change the numbers, they change behaviour. The winners are the firms that plan early, document well, and keep clean digital records,” says 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.
The big picture, why this Budget matters
Markets and ministries alike are focused on fiscal discipline, public borrowing, and growth. The OBR’s March outlook projected modest growth for 2025, with weak productivity still a concern. That backdrop pushes the Treasury toward measures that raise revenue or improve efficiency without heavy new spending.
For small and medium sized businesses, the takeaways are simple. Keep cash buffers healthy, expect tweaks that widen the tax base or tighten administration, and assume that digital compliance will become more important, not less.
Small business tax changes UK, what to watch in November
While no one can promise exact measures before Budget Day, there are clear policy signals to track. Use the list below as a practical watchlist, then act now where early preparation helps.
1. VAT, thresholds and administration
There is active debate about the VAT registration threshold and the growth effects of the current position. Media and policy coverage suggest the threshold is under review. Some reporting points to potential changes, the direction could be up or down depending on the final revenue and growth balance the Chancellor wants to strike. If you are within ten percent of the current £90,000 threshold, prepare both scenarios.
What to do now. Run a rolling twelve month turnover report. Model outcomes if the threshold moves or administration tightens. If your pricing is tight, explore inclusive pricing options and review whether voluntary VAT registration supports credibility and input recovery in your sector.
2. Business rates support and reform
High street businesses and hospitality venues remain sensitive to rates bills. The government has been consulting on reform and exploring a fairer system that supports investment. Reliefs have moved in recent years, so pay attention to any transitional measures and updated relief percentages for 2026 and beyond.
What to do now.
Check your current valuation, confirm you have claimed the correct reliefs, and plan for cash flow if discounts taper next year. If you operate multiple sites, map the impact store by store.
Tools and tech, why software choice matters
Choosing the right software reduces errors and saves time. BES provides bookkeeping services London wide, with full set up and training for Xero bookkeeping setup and QuickBooks accountancy help. For many SMEs, that shift delivers faster transaction reconciliation, clean profit and loss statements, and better cash flow management. It also positions you for Making Tax Digital compliance UK with real time VAT submissions and digital record keeping.
If you want a deeper comparison, ask us about Xero vs QuickBooks, top accounting software for UK SMEs, and benefits of using Xero certified accountants.
3. Tax simplification and administration changes
The Spring updates included a package aimed at simplifying tax and customs administration. The direction of travel is clear. Expect more nudges toward digital records, fewer paper processes, and clearer timetables. These changes aim to reduce burdens, but they reward firms that adopt software early.
What to do now. Audit your finance stack. Confirm your sales system, bank feeds, and expense tools post clean data into Xero or QuickBooks. Remove manual spreadsheets where possible.
4. Making Tax Digital, dates you cannot miss
Making Tax Digital for Income Tax starts in phases from 6 April 2026. Quarterly updates follow in August and November 2026. November announcements could confirm practical steps, pilots, or clarifications, but the timetable is already public. Get ready now rather than later.
What to do now. If you are a sole trader or a landlord with qualifying income, choose MTD compatible software, clean up your chart of accounts, and test quarterly bookkeeping rhythms this autumn.
Follow us on our socials and stay updated with expert tax tips, important deadlines, and practical advice to keep your finances on track
Practical impact by sector, real examples
Short, plain English scenarios for leaders in our core sectors.
Construction and trades
A contractor with £1.2 million annual turnover, split across multiple projects, often sits near the edge of VAT schemes and fluctuating margins. If business rates on your yard or showroom move, or if VAT administration tightens, the effects will hit cash flow. A one percent shift in materials costs on £400,000 of annual spend is £4,000, which can wipe out the profit on a small job if retentions are slow to release.
Your checklist. Post weekly site costs, reconcile supplier credits, review CIS deductions, and forecast VAT liabilities by project. If your twelve month turnover is between £80,000 and £110,000, set decision rules for VAT registration in both threshold scenarios.
Hospitality, restaurants and boutique hotels
Margins are thin and payroll is large. Rates relief changes and any VAT base adjustments on food and drink can move the dial. A restaurant with £1 million of sales and an average net margin of five percent only needs a half percent cost increase, or a small slip in input VAT recovery, to halve net profit.
Your checklist. Close your till to bank reconciliation daily, review input VAT on utilities and refurb spend, and model wage bills across seasonal peaks. Lock in supplier pricing where possible and revisit menu engineering to protect margin.
Skilled services, cleaning, IT support, creative agencies
Your risks are compliance heavy. Late VAT filings, PAYE errors, or missing MTD steps lead to penalties that drain cash. Clients expect clean invoices, timely payroll for staff, and clear reporting.
Your checklist.
Automate invoice runs, collect by Direct Debit, and run monthly profit and loss and aged debt reports. If you are near the VAT threshold, set automated alerts on your accounting dashboard.
Five actions to take before 26 November
Tidy your books. The importance of accurate bookkeeping cannot be overstated. It supports better tax planning, faster accounts preparation, and simple decision making.
Simulate VAT scenarios. Model turnover at ninety, one hundred, and one hundred and ten thousand. Set prices and purchase plans you can activate quickly.
Lock payroll compliance. Confirm PAYE, pensions, and holiday pay are correct. Document processes so cover is easy during year end leave.
Schedule a tax review. Check capital expenditure, claims for allowances, and timing of dividends or bonuses.
Upgrade software where needed. Choose Xero or QuickBooks, link bank feeds, and train your team. Digital records will only grow in importance.
“Our strongest advice is simple. Do not wait for Budget Day to fix your records. Build a clean digital file now so any change is easy to apply,” adds Besnik Vata of bes accountancy in London.
About BES Accountancy
Founded in 2020, BES Accountancy is a London based firm serving businesses of all sizes and self employed professionals across the UK. Led by Besnik Vata, an AAT licensed certified bookkeeper, our team of five specialists provides bookkeeping, payroll management, VAT returns, financial accounting, and accounts preparation for sole traders and partnerships. We are experts in Xero and QuickBooks, so you benefit from accurate, efficient, and compliant digital accounting.
Core values. Availability, Efficiency, Trust.
Other services include. Accountancy, Bookkeeping. Accountancy, Financial Accounting and Accounts. Preparation for sole traders and partnerships. Taxation, VAT. Accountancy, Payroll.
Explore our story on the About us page, view recent insights on the bes Blog, and see more on our Instagram.
Proof of partnership and community support
Strong results come from strong alliances. Our partnership with a respected London marketing firm Merx Marketing, directed by Daniel Nikolla, shows our commitment to wider client success. Read the announcement here to learn how we use joined up thinking to support growing businesses.
Evidence, resources and further reading
For the official timeline on MTD for Income Tax, see the government guidance. It explains the 2026 start date and quarterly update schedule.
External resources:
Related blog:
Do you own a construction company in the UK?
If so we strongly recommend you to read our recent 2025 blog on managing payroll, VAT and bookkeeping, written specifically to help construction companies in the UK.
How BES keeps you ready
Bookkeeping for partnerships and accounting services for sole traders with monthly management packs.
Payroll services London wide with set up, processing, payslips, and RTI submissions.
VAT registration UK and VAT advice for small businesses, plus quarterly VAT returns filing UK.
Financial accounting for SMEs and account preparation services UK with year end review meetings.
Computerised accountancy systems consultancy so your tech stack works together.
“Our role is to remove friction. We explain in plain English, we handle the submissions, and we keep you informed. That way you spend evenings with family, not spreadsheets,” says Besnik Vata.
Need tailored advice before November?
Call 07816264205 or visit us at our London office for a free consultation.
FAQ, Autumn Budget 2025 for small businesses
1) When is the Autumn Budget 2025 and why does the date matter for planning?
It is on Wednesday 26 November. The date matters because it sets the point when new measures, allowances, or consultations become public, along with updated OBR forecasts. With a late November event, owners can still adjust year end spending, confirm payroll settings, and update cash flow projections before January. The GuardianOffice for Budget Responsibility
2) What are the most likely small business tax changes UK to prepare for?
Expect movement around VAT administration and thresholds, ongoing business rates support and reform discussions, and continued focus on simplification and digital compliance. None of this guarantees a specific number, but the signals are clear. Plan for either a higher or lower VAT threshold, keep your rates assumptions conservative, and remove paper based processes now so any change is easy to absorb. GOV.UK+1
3) How do I prepare for Making Tax Digital without overhauling everything at once?
Start with bookkeeping hygiene. Choose Xero or QuickBooks, connect bank feeds, and reconcile weekly. Use standard charts of accounts, avoid free text categories, and test a quarterly report cycle this autumn. The official start for MTD for Income Tax is April 2026, with first quarterly updates due in August 2026, so teams that practise now will have no scramble later. GOV.UKICAEW
4) Will business rates relief change again and what should hospitality venues do?
Rates policy is live and has shifted more than once in recent cycles. Monitor your local authority bills, confirm your reliefs, and keep a cash reserve for potential adjustments. Hospitality operators should run a rates scenario in their forecast and keep dialogue open with landlords and lenders. GOV.UKHansard
5) How can BES Accountancy help me decide on VAT registration and pricing?
We review your pipeline, analyse input VAT on purchases, and build models for inclusive and exclusive pricing. For firms close to the threshold, we set alerts in your accounting software, agree decision rules, and prepare the paperwork so you can register quickly if needed. This gives you control and protects margin during busy periods.
Internal resources to explore next
Ready to get ahead of the Autumn Budget 2025?
Contact bes.
Free quote, fast response. Call 07816264205 Email Info@bestax.co.uk
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