The Autumn Budget on 26th November 2025 is just around the corner, and it’s shaping up to be a big one. With the economy still feeling the squeeze (slow growth, stubborn inflation, and rising borrowing), businesses across the UK should be watching closely.



The government has promised not to raise Income Tax, National Insurance or VAT, but let’s be honest: the money to plug the gap has to come from somewhere. That means tweaks to reliefs, thresholds and business incentives are firmly on the table.

So, what could be coming and what can you do to get ahead of it? Let’s take a look.

What might be in the Chancellor’s red box?

Here’s what our team at Collective Concepts Accounting thinks is most likely to appear in the 2025 Budget - or at least, what you should be prepared for.

1. Threshold freezes and “fiscal drag”

One of the easiest ways for the Treasury to raise extra cash is by quietly freezing tax thresholds instead of raising tax rates. It’s sneaky but effective.

That means as wages, profits and turnover rise, more of your income can fall into higher tax bands - without any headline rate change.

What to do:
Take a close look at your wage and cost forecasts. If you’re due to bump salaries or expand next year, see if it’s worth timing it differently to stay below key thresholds.

2. Tweaks to Corporation Tax reliefs and incentives

Even though the government says there won’t be tax hikes, expect the rules around reliefs to tighten. Capital allowances, investment incentives, or sector-specific benefits (like those for property or tech) could all be slimmed down.

What to do:
Review which reliefs your business currently claims, from capital allowances to R&D tax credits, and check if you’d still qualify if the criteria got stricter.

3. VAT and Business Rates: The quiet changes

A big VAT hike would make headlines, so it’s unlikely. But changing the VAT registration threshold or business rate bands? That’s a subtler way to boost revenue, and one that could hit smaller businesses hardest.

What to do:
Check how close your turnover is to the VAT threshold and plan for the possibility it could be lowered. Think about how that would affect pricing, cashflow and admin.

4. Wealth and property taxes

There’s growing talk of targeting wealth and assets and that’s not just individuals but businesses that own property. That could mean higher business rates on high-value premises or a rethink of property investment reliefs.

What to do:
If your business owns or leases property, speak to your accountant about potential rate changes or ways to make your property portfolio more tax-efficient.

5. Tightening the rules on investment and growth incentives

While the government wants to appear “pro-growth,” fiscal reality means that any new incentives will likely come with more red tape. Expect stricter qualifying rules for R&D, green investment, or capital spending.

What to do:
If you’re planning a big innovation or capital project, start it sooner rather than later. Lock in your eligibility under the current rules and keep detailed records of what you’re doing and why it qualifies.

What businesses should do now

Here’s your quick-action checklist to make sure you’re not caught off guard:

1. Review your forecasts.
   Map out wage growth, sales and costs for the next year or two. Know where you might hit thresholds and plan around them.
   
   
2. Audit your tax reliefs.
   Make sure your R&D, capital allowances and investment claims are accurate and well-documented. If anything looks marginal, get it reviewed.
   
   
3. Keep an eye on VAT and turnover.
   If you’re near the registration limit, plan for what happens if it drops. Have a pricing and process plan ready to go.
   
   
4. Revisit your property strategy.
   Review your property tax exposure and whether potential business rate changes could affect you.
   
   
5. Time your spending wisely.
   If you’re about to invest in growth or tech, consider doing it under the current regime while incentives are still generous.
   
   
6. Talk to your accountant (that’s us).
   Budget announcements often come with little warning. We can model different scenarios, stress-test your plans, and help you respond quickly once the Chancellor delivers his speech.
   
   

The Bottom Line

This year’s Autumn Budget probably won’t deliver dramatic tax rate rises, but that doesn’t mean businesses are safe. Expect quiet but costly adjustments through frozen thresholds, reduced reliefs, and added admin.

If your business is growing, investing or innovating, the best move is to act before the Budget lands. Talk to Collective Concepts Accounting today to review your reliefs, assess your risks, and make sure you’re not left paying more tax than you need to.

FAQ - Budget 2025 Predictions

When will the Budget be delivered?

The Autumn Budget is scheduled for Wednesday, 26th November 2025.

Will VAT definitely go up?

A rise in the standard 20% rate seems unlikely in this Budget. However, changes to thresholds, reliefs, or registration rules are plausible.

My business uses R&D reliefs heavily. Should I worry?

Possibly. While reliefs may continue, the rules and eligibility criteria may tighten. Ensure your documentation, project evidence and costs are robust now.

What if my turnover is approaching a threshold?

If you’re nearing VAT registration thresholds or other band thresholds, you’ll need to plan carefully for the possibility of earlier registration or higher obligations.

Should I accelerate investment or delay costs?

It depends. Accelerating might lock in current reliefs; delaying may reduce risk if you expect relief removal. Talk to your adviser about the optimal approach for your business.