The Autumn Budget 2025 has landed. While there aren’t headline-grabbing tax rate rises, a series of structural changes could affect small business owners, landlords, self-employed clients, and savers — especially here in Milton Keynes.
As a local Milton Keynes bookkeeper and specialist in bookkeeping services for small businesses, I’ve summarised the most important points so you can plan ahead, protect cash flow, and reduce tax surprises.
Fiscal Drag: Why Your Taxes May Slowly Increase
Income tax and National Insurance thresholds are frozen until 2031, meaning more people will gradually move into higher tax bands, even if their income hasn’t changed in real terms.
This fiscal drag is particularly relevant for small business owners and landlords in Milton Keynes, so early planning is key.
National Insurance Updates
While NI rates remain unchanged, frozen thresholds mean many individuals and businesses will pay more over time:
- Employers: 15%
- Employees: 8% then 2%
If you run a business, reviewing payroll planning with a Milton Keynes accountant or bookkeeper can help you avoid unexpected NI costs.
Limited Company Directors: Dividends and Pensions
Dividend tax rises from April 2026:
- Basic rate: 10.75%
- Higher rate: 35.75%
- Additional rate: 39.35%
The £500 dividend allowance remains, but the familiar low-salary/high-dividend/pension approach may now be less effective.
Pension Salary-Sacrifice Changes (From 2029)
Only the first £2,000 of salary-sacrifice contributions will be NI-free. Contributions above this threshold will attract both employee and employer National Insurance.
Careful planning with a Milton Keynes accountant could prevent some directors from paying more tax than sole traders for the first time.
Self-Employed and Mixed-Income Tax Payment Timing
From April 2029, those with both PAYE and self-employed or rental income may see their additional tax collected through PAYE during the year, instead of a lump sum at year-end.
Currently, this affects only mixed-income taxpayers, but the government is consulting on extending it to self-assessment-only clients in the future.
As a Milton Keynes bookkeeping services provider, I recommend planning ahead and ensuring accurate quarterly reporting under Making Tax Digital to avoid surprises.
Landlords: Changes to Rental Income Tax
From April 2027, rental income will be taxed at standalone property income rates:
- 22% / 42% / 47%
This could significantly affect landlords in Milton Keynes, so reviewing your property income and planning ahead is essential.
Savers: Standalone Rates and the Importance of ISAs
From April 2027, savings income will move to standalone rates: 22%, 42%, and 47%.
While the personal savings allowance remains, more people may pay tax on interest. This makes ISAs and pensions more valuable for sheltering savings — advice a Milton Keynes accountant can help optimise.
High-Value Homes
A new council tax surcharge is planned from 2028 for properties over £2 million, something for high-value homeowners to consider in future planning.
Summary: Why Local Businesses Should Plan Now
The Autumn Budget 2025 may feel subtle, but the cumulative effect is higher tax over time for:
- Small business owners
- Self-employed clients
- Landlords
- Savers
If you’re a small business or landlord in Milton Keynes, reviewing your structures, income, and plans now can help maintain efficiency and reduce tax surprises.
As a Milton Keynes bookkeeper, I’m here to help you navigate these changes, optimise your finances, and plan for the future.
Sam Mallabar
We Balance Bookkeeping – Bookkeeping Services Milton Keynes get in touch today click here to book a call.
