Autumn Budget 2025 – what matters to accountants and their clients 

This year’s budget was delivered after a flurry of media speculation, an early “leak” of the OBR report, and some sparks flying in the House of Commons as a result. 

But what’s really important is the detail within the budget itself.   

What did Chancellor Rachel Reeves have to say that matters to accountants and the business community they serve? 

The top 4 announcements that will affect your clients 

This budget had some major announcements. Of these, there were four areas which will leave some business leaders concerned.  

1) The salary sacrifice cap 

Salary-sacrifice pension contributions above £2,000 will be taxed from 2029, in an effort to raise £4.7bn annually. 

In the run-up to the budget, REBA surveyed businesses and found that  99% said they would be affected if this happened.  

Former pension minister Steve Webb, now a partner at LCP, said, “The decision not to implement this change until 2029 creates a huge opportunity for firms to restructure the way that they offer pay and pensions in order to mitigate or eliminate this new charge,” Mr Webb said. 

“There is a high probability that this policy will only raise a fraction of the amount expected by the chancellor.” 

What must be done?  

To navigate these waters, businesses must turn to accountants for advice on tax planning. The question will be whether a salary sacrifice scheme is still good for them. It will be important to review and, where necessary, restructure pension arrangements and benefit schemes.  

In light of this announcement, many accountants will find themselves in a position as long-term advisors. Where should client businesses invest now? It may no longer be tax-efficient to keep things as they are. 

2) Dividend tax increases 

The basic dividend income rate has increased from 8.75% to 10.75%, and the higher rate has been adjusted from 33.75% to 35.75%. 

The rates will put the UK’s rates among the highest in the world, and will have an effect on many of the business owners that accountants serve. An accountant’s role here will be to help them with financial planning – will it still be beneficial for these owners and entrepreneurs to be paid in dividends if they are now taxed higher?   

3) A freeze on income tax thresholds 

The income tax threshold will remain unchanged until April 31, resulting in no increase to personal allowances. Consequently, those earning the same amount may experience a reduction in their net income. This change is likely to have a greater impact on lower-earning sole traders.  

This is yet another burden for this client. Needless to say, they will also be struggling with the additional burden of Making Tax Digital during this time and, as we shall see in the next section, higher wages should they choose to hire and share their responsibilities.  

4) Wages are going up 

Starting April 1, 2026, the UK’s National Living Wage for those aged 21 and above will rise to £12.71 per hour, up 4.1%. The minimum wage, meanwhile, will go up by 8% to £10.85. affecting 18-20 year olds). Furthermore, 16- and 17-year-olds, and those on apprenticeships, will get a rise of 6% to £8 per hour. The question for clients will be how they find the extra money, as this is the second year in a row that increases to minimum wages have been made (and on top of an Employer National Insurance contributions increase from April 2025).  

A new era of collaboration 

Now more than ever, accountants will need to build a collaborative partnership with clients. Long gone are the days when financial experts could be on hand for compliance and not advice. 

The challenge is to prove value now, while leaders are already worrying about costs. Your advice will save them money and help them grow, and is worth paying for – but clients need to be aware of how indispensable your firm will be.  

Digital systems will help your client get to grips with live data, which captures critical information and allows for fast decisions. With such systems, accountants can be proactive, looking at real-time information, and the client can understand the bigger picture. 

A time for greater efficiency

My colleague, Jenny Strudwick, Director at IRIS Accountancy, said, “Today’s Budget delivers a significant wave of tax changes at a time when most practices are already stretched thin with managing Companies House reforms, MTD compliance and the pressures of busy season. The immediate question for firm leaders isn’t whether clients will need guidance – they will – but how to deliver that without being overwhelmed by demand.  

“The budget will test resilience for businesses across the country, and accountancy firms have a critical opportunity to demonstrate foresight and provide clarity, as clients will be looking for guidance, reassurance and in some cases help navigating measures they’re unhappy about.”

She added, “The firms that navigate this successfully will be those that resist the urge to react to everything at once while remaining flexible enough to react quickly to the most burning changes. Smart segmentation is critical: identify which clients are genuinely impacted by today’s announcements, for example, employers facing increased National Insurance burdens, high-net-worth individuals or property-rich clients and focus there first. Proactive, targeted communication to these groups’ signal that you’re across the detail and ready to support them. By combining scenario modelling, proactive remuneration reviews, accelerated succession planning, and clear client communication can help clients navigate uncertainty while strengthening their advisory role and protecting revenues.

“The harder challenge is creating the capacity to have these conversations properly. For most firms, this means working more efficiently and reducing administrative burden through technology, automation or outsourcing. It also means making deliberate choices about priorities and accepting that some things will need to wait. The practices that can create that space strategically, rather than letting urgency dictate everything, will maintain both quality of service and team wellbeing through what’s ahead.” 

Expand your team and use solutions that help you concentrate on advisory 

Take a look at our outsourcing options, which can help you take care of admin and concentrate efforts on where they matter the most.  

• Statutory accounts  

• Bookkeeping 

• Payroll  

• Tax returns  

• iXBRL tagging  

• Audit support  

Also look at digital tools and see what can drive efficiencies – including Dext and solutions like IRIS Elements and IRIS Cloud Accounting.

Get insights from experts in our Budget 2025 webinar  

Join me as I discuss the latest budget findings with experts Paul Lodder FCCA – VP of Product Strategy and Accounting Expertise (Dext), Paul Aplin OBE – Tax Expert.

Together, we will explore potential impacts on tax, compliance, and business planning and help you prepare for the year ahead.