This week’s Budget brings some major changes that will affect individuals, families and business owners across our region – and likely for years to come. At Turas Accountants, our role is to help you navigate these shifts with clarity and confidence, so you can continue moving your business forward.
Helen Columb, owner of Turas Accountants, has shared her thoughts on the most significant developments…
Higher Taxes for Many Households and Businesses
According to the Office for Budget Responsibility, the UK is now experiencing the highest overall tax burden in its history. Several measures announced in the Budget contribute to this:
Income tax thresholds frozen for another three years
The freeze on income tax thresholds continues until 2028. This means that as wages rise—especially with the new National Minimum Wage increases—more people may move into higher tax bands without realising it. It’s now more important than ever to review your tax position regularly to make sure you aren’t paying more than you need to.
National Minimum Wage rising above inflation
From April 2025, the National Minimum Wage will rise for all age groups:
• 21+: £12.21 → £12.71
• 18–20: £10.05 → £10.85
• Under 18s & apprentices: £7.55 → £8.00
For employees, this is welcome news. For employers – particularly those with larger teams -this is a cost that should be factored into next year’s planning.
Tax Increases on Investment Income
From 2026 and 2027, the basic and higher rates of tax on Property income, Dividend income & Savings income…will increase by 2%. Dividend changes apply from April 2026, with property and savings income following in April 2027. If you receive income from any of these areas, now is a good time to review your structure and plan ahead to reduce unnecessary tax exposure.
New £2,000 limit on salary sacrifice before National Insurance applies
From April 2029, salary sacrifice pension contributions above £2,000 will attract National Insurance.
This is a significant change for higher earners relying on salary sacrifice for long-term tax efficiency. Early planning will be key.
A New Mileage Tax for Electric Vehicles
From April 2028:
• Battery electric vehicles: 3p per mile
• Plug-in hybrids: 1.5p per mile
This marks the beginning of a shift toward taxing road usage rather than fuel usage. If your business uses electric vehicles, this is a future cost worth keeping on your radar.
High-Value Property Tax from 2028
Homes valued at over £2 million will attract a new annual council tax surcharge:
• £2,500 for properties just over £2m
• Rising to £7,500 for properties valued above £5m
Fuel Duty Frozen Until August 2026
After that, rates will begin to return to their March 2022 levels gradually. This helps stabilise transport costs in the short term, especially for service-based businesses on the road.
Changes to ISA Rules
The total ISA allowance remains at £20,000, but with new conditions:
• £8,000 must be invested in a stocks & shares ISA
• The balance can be held in cash
• Over-65s may keep their full £20,000 as cash if they prefer
These changes may affect long-term saving strategies, so reviewing your approach is wise.
Customs Duty on Low-Value Overseas Imports
By March 2029, all low-value parcels from overseas will attract customs duty—even those under £135.
This will reduce the competitive advantage of ultra-low-cost retailers shipping directly from abroad, supporting UK businesses who currently struggle to compete with these prices.
End of Class 2 NI Contributions for Non-Residents
Non-residents will no longer be able to pay Class 2 National Insurance to protect entitlement to the UK state pension. This reinforces the principle that the state pension is linked to economic participation in the UK.
Support for Employers and Young Talent
SMEs will no longer need to pay the 5% contribution towards apprenticeship training for under-21s.
This is a welcome boost for businesses looking to grow their teams and develop young talent. If you’re planning to bring apprentices into your business, this could be the right time to start preparing.
Making Tax Digital Is Definitely Coming in 2026
For sole traders and landlords, the Budget also made one thing clear: the new Making Tax Digital (MTD) regime will come into effect in April 2026. This represents a major shift in how records must be kept and how frequently submissions are made.
If you’re unsure whether these rules will apply to you – or how to prepare – now is the ideal time to start planning.
Our Advice: Don’t Navigate This Alone
These changes have the potential to reshape household budgets and business finances alike. As Helen explains:
“I’d strongly advise anyone who thinks they may be affected to seek professional advice to ensure that their finances work as efficiently as possible for them.”
At Turas Accountants, we partner with you to make sense of the numbers, understand your options, and chart a clear path forward – so you can focus on what matters most: growing your business with confidence.