27/11/2025
📢 UK Budget 2025 — What It Means for You & Your Business
✅ What’s new:
Income tax and National Insurance thresholds are frozen for another three years, more people may be pushed into higher tax bands.
Pension “salary sacrifice” tax perks will be capped at £2,000 from April 2029; contributions above that will face National Insurance, this impacts higher earners especially.
The cash ISA annual allowance will be reduced to £12,000 (from £20,000) from April 2027, savers may face tougher decisions on where to park cash.
To help with living costs, the Budget promises an average £150 reduction on energy bills next year, with bigger savings for low-income households.
At the same time, headline rates of income tax, VAT and National Insurance remain unchanged.
💡 What this means for PA Simple Tax clients:
If you run a small business or freelance, now is a good time to review your payroll, pension contributions and tax planning to avoid unwelcome surprises.
Savers should think carefully about ISA vs other investment options, reduced cash-ISA limits may make other savings vehicles more appealing.
If you use salary-sacrifice pension schemes, it may be the moment to reassess long-term pension strategy, especially if you’re a higher earner.
At PA Simple Tax we’re here to help you navigate these changes, whether you need help with payroll, CIS returns, tax planning or end-of-year accounts.
Contact us today today at: [email protected] or visit our website: www.pasimpletax.co.uk to find out more.