Image: www.ft.com
Tax allowances for business owners to think about before November Budget The next UK Budget takes place on 26th November. No one knows what the Chancellor will announce, but with the limited financial headroom, it is unlikely that allowances will become more generous. If you are a business
Finance
owner, it is sensible to
review and use today’s available allowances while you can. The
budget could bring significant changes
save for retirement. Using allowances
like pension annual limits, ISAs, dividend allowances, R&D tax credits, and capital allowances is even more important as the tax burden grows.
which may reduce future benefits.
02 Understand the impact of the
01 Make the most of your tax
employer NICs
allowances and exemptions
Despite changes to pensions and
inheritance tax, pensions remain a taxefficient way for business owners to
20 www.sussexbusinessgroup.co.uk
6.7%, from £11.44 to £12.21 for those
aged 21 and over. These changes have significantly impacted business costs.
SME owners should review the potential effect on staffing and pricing if there are further changes.
increase in minimum wage and
03 Be aware of changes to Business
In April this year, employer NICs rose
From April 2026, a 20% inheritance tax
from 13.8% to 15%, with the threshold dropping from £9,100 to £5,000. The minimum wage also increased by
Relief (BR)
will apply to BR assets above £1 million, reducing the full exemption previously available. For businesses over this