Getting Ready for the Autumn 2025 Budget

Written by Kirsty Fox

The Autumn Budget is almost upon us and while none of us have a crystal ball (though it would make bookkeeping easier), it’s a good moment for sole traders and small business owners to take stock and make sure everything’s in good financial order.

With public finances under pressure, we’re not expecting major tax fireworks this time around. Instead, it’s likely we’ll see quiet tweaks and frozen thresholds, the kind of changes that don’t make headlines but do make a difference to your bottom line. So, what might be coming and how can you prepare?

What Might Change with the Autumn Budget

While we’ll have to wait for the Chancellor’s speech to know for sure, here are a few key areas already being talked about:

Business Rates

There’s pressure to give smaller premises more support, especially on the high street, but some reliefs could change or be phased out. If you rent or own business property, keep an eye on your eligibility for small business rate relief.

Allowances and Thresholds

If the personal allowance and VAT threshold remain frozen, inflation could quietly nudge more people into higher tax brackets. It’s one of those “stealth” increases that sneaks up on small businesses.

Making Tax Digital (MTD)

MTD for Income Tax is inching closer. If you’re not already using digital bookkeeping software, now’s a great time to make the switch. The smoother your record keeping is, the less of a scramble you’ll face when new reporting rules kick in from April 2026.

Reliefs and Deductions

Capital allowances, R&D tax relief, and investment incentives are always under review. If you’ve been investing in equipment, vehicles, or technology, keep those records organised, adjustments to reliefs can affect how much tax you’ll save.

How to Prepare

No matter what’s announced, a bit of preparation now will help you stay one step ahead.

1. Review Your Setup

Check whether your current structure (sole trader, partnership, or limited company) still works for your income level and plans. What was right a few years ago might not be the most tax-efficient option today.

2. Stay Organised

Keep your books up to date and make sure you’re using MTD-compliant software. It’s far easier to make decisions (and react to Budget changes) when your figures are current and accurate.

3. Plan Your Cashflow

Budgets often bring smaller changes that can still affect your cash position. Build a little buffer for possible shifts in rates or allowances later in the year. It’s always better to have a cushion.

4. Document Everything

Hold onto receipts, invoices, and investment records, particularly for equipment or improvements. If allowances change, good record-keeping ensures you can still claim every penny you’re entitled to.

5. Wait for the Details

It’s tempting to make quick decisions based on predictions, but the real detail comes in the small print after the Budget. Take time to understand confirmed changes before adjusting your plans.

The Bottom Line

Budgets often bring evolution rather than revolution, small adjustments rather than sweeping reforms. Even those subtle changes can affect your tax bill, cashflow, and long-term plans.

By staying organised, reviewing your setup, and keeping your records in shape, you’ll be ready to adapt quickly whatever the Chancellor announces. After all, a little preparation now means fewer surprises later… and that’s always good for business.