Boost Budget Buster: What Every Entrepreneur Needs to Know Now

Written By James Court

Big changes are coming – are you ready to protect your profits and plan for growth? 

The latest government announcements bring a mix of opportunities and challenges for growing businesses. Misty Nickells from Griffin Chartered Accountants has given us your quick-hit guide to what matters most – and how to stay ahead.

1. Capital Allowances – Time to Review Your Investment Strategy

The writing down allowance main rate is set to drop from 18%, with details on timing still pending. If you’re planning major equipment purchases, act now to lock in higher relief.

2. Business Rates – Winners and Losers

From April 2026, retail, hospitality & leisure properties get a break – lower rates for 750,000 businesses. But if your property is worth over £500k, expect higher rates. Time to review your property portfolio and plan for the impact.

3. Apprenticeships – Free Training for SMEs

Funding is being released to make under-25 apprenticeship training free for SMEs. Timing is unclear, but this is a golden opportunity to upskill your team without extra cost.

4. Employee Ownership Trusts – Tax Relief Slashed

Selling to an EOT? The 100% CGT relief is gone. Now only 50% is exempt, with the rest chargeable immediately. If succession planning is on your radar, revisit your strategy today.

5. Dividend Tax Hike

From April 2026, dividend tax rates rise by 2% across all bands. Factor this into your remuneration planning – and consider alternative extraction methods.

6. Minimum Wage Increases

From April 2026, wages rise significantly:

  • 16–17 & apprentices: £8.00/hr (+45p)

  • 18–20: £10.86/hr (+85p)

  • 21+: £12.71/hr (+50p)
    Budget for payroll increases now to avoid a squeeze later.

Personal Tax Watch

  • Income tax thresholds frozen until 2031 – more earners pushed into higher bands.

  • Pension salary sacrifice cap of £2,000 from April 2029 – NI applies above this.

  • Cash ISA allowance drops to £12,000 from April 2027 – max out your £20k allowance while you can.

Property & EV Changes

  • Council tax surcharge from 2028: £2,500 for £2m+ homes, £7,500 for £7m+.

  • EV mileage tax from 2028: 3p per mile for EVs, 1.5p for hybrids.

  • EV grants extended to 2030 + 100% business rates relief for charging points.

Action Points for Entrepreneurs

  • Accelerate capital investment before allowance cuts

  • Review dividend strategy ahead of April 2026

  • Plan payroll budgets for minimum wage hikes

  • Maximise ISA contributions before April 2027

  • Explore apprenticeships for cost-effective growth

Bottom line: These changes will reshape the cost of doing business. Smart planning now means fewer surprises later – and more cash to fuel your growth.
Speak to your adviser today to review your strategy and make sure you’re ready for what’s coming. Proactive planning now will save you time, money, and stress later.

James Court
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