Autumn Budget 2025 – What It Means for You and Your Business

Autumn Budget 2025: Key Updates and What They Mean for You

For tech founders and fast-growing startups, every Budget has the potential to shape hiring plans, runway, and long-term strategy. Although this year’s Autumn Budget didn’t introduce any policy changes aimed directly at the tech sector, the broader measures announced by Chancellor Rachel Reeves will still affect how startups plan for the year ahead. At OnTheGo Accountants, we’ve broken down the announcements so you can understand how the changes influence both personal finances and business operations.

1. Employment Costs Are Set to Rise

One of the most immediate changes for employers is the update to the National Living Wage and apprenticeship rules.

Updated National Living Wage Rates (from 1 April 2026)

The government has confirmed the Low Pay Commission’s recommendations, meaning hourly wages will increase across all age groups:

• 21+ rate: rising to £12.71 (4.1% increase)
  
• 18–20 rate: rising to £10.85 (8.5% increase)
  
• 16–17 rate: rising to £8.00 (6% increase)

These changes will particularly affect businesses planning to expand their teams in 2026, especially those with entry-level or junior staff.

Apprenticeship Support for SMEs

Small and medium-sized businesses stand to benefit from strengthened apprenticeship measures:

• Full government funding for training apprentices under 25 in SMEs (ending the previous 5% employer contribution)
  
• Apprentice minimum wage increasing to £8.00 per hour
  
  

This may make apprenticeships a more attractive option for companies looking to grow talent from within.

2. Changes to Family Support & Personal Taxes

Several adjustments to the benefits and tax system will impact households in different ways.

Universal Credit and Child Benefit

• The “two-child limit” in Universal Credit is being abolished, meaning support will now be provided for all children in eligible families.
  
• Plans to move the High Income Child Benefit Charge to a household-based system have been dropped. The existing individual income system stays in place:
  
• The charge begins when one person earns over £60,000
  
• The benefit is fully removed at £80,000

Frozen Personal Tax Thresholds

Tax thresholds will remain unchanged until 2031. This essentially means more people may move into higher tax brackets over time, even without major salary increases.

3. Business Taxation & Future Planning

The Budget included several measures relevant to business owners and company directors.

Business Rates

Retail, hospitality, and leisure businesses will receive permanently reduced business rates. To balance this, properties at the top end of the value scale—such as large distribution centres—will face a higher multiplier.

Employee Ownership Trusts (EOTs)

The tax relief available when selling a business to an Employee Ownership Trust is being scaled back:

• Capital Gains Tax relief reduced from 100% to 50%
  This could change the appeal of EOT structures for future succession planning.

Corporate Tax Stability

The government has confirmed a Corporate Tax Roadmap designed to keep the main rate stable, giving businesses more clarity for long-term planning.

UK Listing Relief

A new Stamp Duty Reserve Tax relief will be introduced to support companies looking to list in the UK, part of a wider plan to strengthen the domestic market for scaling firms.

4. Wealth, Assets, and Personal Financial Planning

A series of adjustments aim to bring taxation on investment and asset income more in line with earnings from work.

Dividend and Capital Gains Tax Increases

Tax on both dividends and property-related income will rise, which will affect directors who rely on dividend payments or those with investment portfolios.

Pension Salary Sacrifice Cap (from 2029)

National Insurance relief on salary sacrifice pension contributions will be limited to £2,000 per person. Higher-earning directors and employees will notice the biggest impact.

Electric Vehicle Levy

Owners of electric vehicles will soon need to report and pay a per-mile contribution, reflecting falling fuel duty revenues.

Final Thoughts: How to Prepare Now

This year’s Budget brings a mix of cost increases and targeted support. While rising wage requirements will add pressure for many employers, the expanded apprenticeship funding may help offset some of the burden. On the personal side, the combination of frozen tax thresholds and tighter pension rules means individuals should review their financial planning sooner rather than later.

If you’d like help understanding how these updates affect your business or personal finances, OnTheGo Accountants is here to support you through the 2025/26 changes.