📢 Budget 2025 Predictions: What Might Be Coming (And What You Should Know)

With the next Budget scheduled for Tuesday 26th November, the rumour mill is spinning at full speed — and depending on how you run your business, save your money, or plan your future, a few of the whispers are worth tuning in to 👀

Now, before we dive in — a little reassurance:
Nothing is confirmed yet. This is just a roundup of what’s being talked about ahead of time, so you can stay informed, not panicked.

Let’s break it all down nice and simply 👇

💰 Income Tax: The Freeze That’s Already Costing You

Labour’s been keen to avoid raising income tax for “working people” — but behind the scenes, the tax thresholds are still frozen.

That means:

• The £12,570 tax-free allowance is staying put

• The higher-rate and additional-rate bands aren’t moving either

• And as your wages or profits go up with inflation, more of it gets taxed

👉 It’s a sneaky way of increasing your tax bill without changing the actual rates — and it’s already happening to millions of people.

🏦 ISA Changes: Cash vs Stocks & Shares

There’s a rumour that the £20,000 ISA allowance could be halved for cash ISAs, while the full allowance would remain for stocks & shares ISAs.

Why? The Chancellor wants to nudge the £300bn currently sitting in cash ISAs into the UK stock market to support British business.

👉 If you’re a cautious saver, this could limit your tax-free savings options in future — so keep an eye out.

🧾 VAT: The Quiet Shift Small Businesses Won’t Love

No change is expected to the main 20% VAT rate, but that’s not where the real shift is happening…

There’s talk of gradually lowering the VAT threshold from the current £90,000 to £30,000 😳

This would pull thousands more small businesses, freelancers, and sole traders into the VAT system — increasing admin and costs without technically “raising tax”.

👉 If your turnover is creeping toward the current threshold, or you're just starting out, this is one to watch closely.

👩‍⚖️ LLPs: Time to Review Your Structure?

Limited Liability Partnerships (LLPs) — often used by professionals like lawyers, GPs, and consultants — are also in the spotlight.

Right now, LLP partners don’t pay employer National Insurance, which saves a chunk in tax. But the Chancellor may reverse this, with the move predicted to raise around £2bn.

👉 If you’re operating as an LLP or considering switching to one, be aware that the advantages may be shrinking.

🧓 Pensions: (Relatively) Safe for Now

Here’s some good news 🎉

The government has said there will be no changes to auto-enrolment pensions before the next election. That means no tweaks to how much employees save or how it’s structured.

They’re also holding firm (for now) on the triple lock for state pensions — meaning your pension will continue to rise with inflation, earnings, or 2.5%, whichever is higher.

👉 For anyone planning for retirement or relying on their state pension, that’s a relief.

🧐 Other Possible Changes to Watch

Alongside the bigger-ticket items, there are a few more quiet whispers in the background. Nothing confirmed, but they paint a picture of where future changes might come from:

• Inheritance Tax – introducing a lifetime gifts cap to limit how much you can give tax-free while still alive

• Wealth Tax – targeting investment income or non-salary wealth

• Landlords – possibly more taxes or reduced reliefs for those with rental properties

• Loophole closures – especially on business structures that currently offer tax advantages

👉 The theme? Taxing assets, wealth, and alternative income — rather than increasing rates on traditional earnings.

🧠 So… What Should You Actually Do Right Now?

Good question.

The answer is: nothing drastic. But being aware is half the battle.

Here’s what I’d suggest:
✔️ Review your income sources and tax position
✔️ Make sure your savings strategy still fits the ISA landscape
✔️ Keep an eye on your turnover if you’re anywhere near the VAT threshold
✔️ Consider your business structure if you're in an LLP
✔️ And as always — keep good records and don’t wait until the last minute to ask questions!

🎁 More Help is Coming…

If all this makes your head spin — I hear you! That’s exactly why I’ve got some brilliant books and digital tools coming soon to help you stay compliant, calm, and in control, no matter what the next Budget brings.

And of course, I’ll be breaking down the real changes after the Budget — in plain English, no jargon, and with tips that make sense for real business owners.

So stay tuned — and as always, pop me a message if you’ve got a question or just want a quick chat about your setup 💬

Yours in budget calm and tax clarity,
Lisa x