After five years, this last Monday, we held a networking session in the wake of last week’s Budget announcements. We covered a wide range of changes, some expected, some strange, and some that genuinely matter more than the headlines would suggest. While the media has been busy being shocked by things everyone already knew, our event focused on the details that will actually affect business owners, employees, and landlords over the coming years.
Below are the main points from the session, with some of the commentary and context shared on the day. The presentation was actually made by Giles Mooney who is the host of TaxTV and one of our favourite speakers on the circuit.
Capital Allowances & Electric Vehicles: The Surprise One-Year Extension
During the event, Giles highlighted an odd detail:
Electric vehicle first-year allowances have usually been renewed in two-year blocks.
But this year?
Just one year.
That’s almost always a sign that the government is preparing to phase something out.
So yes, the long-predicted end of EV generosity is getting nearer. And while some commentators have reacted dramatically to, for example, the introduction of EV road tax, for most people, the change will amount to a few hundred pounds not a life-altering blow.
But the key message from Monday was clear:
If you’re planning a company EV, don’t leave it too long.
The £6-per-Week Work-from-Home Allowance: The Door Has Closed
We also dug into the tightening of rules around the work-from-home allowance.
Many employees have continued to claim the £6 weekly allowance long after returning to the office since Covid.
HMRC has finally removed it.
From 6 April:
- Only those required to work from home can claim.
- Those who prefer working from home cannot.
During the event, we emphasised that this will catch out businesses still casually encouraging staff to claim it.
Eye Tests & Flu Jabs: A Common-Sense Win
One of the more amusing points discussed on Monday was how the rules are finally changing on employer-funded eye tests and flu vaccinations.
Previously:
- Employer pays directly → allowed.
- Employee pays and gets reimbursed → bizarrely, not allowed.
From next April, all reimbursements will be tax-free.
A long-overdue fix. Though it was noted, half-jokingly, during the session that the rule names explicitly flu jabs, not Covid jabs, only one arm of your double-vaccination appointment is apparently covered.
Salary Sacrifice & Pensions: The Biggest Structural Change
This was the big topic of Monday’s event.
From 2029, pension contributions that are salary sacrificed will be restricted.
And here’s the simple rule we discussed:
To qualify as salary sacrifice, you must have:
- A salary
- Which you actually sacrifice
This is going to hit company owners who currently pay very low salaries and make large employer pension contributions. Under the new rules, those contributions may no longer be tax-efficient unless salary structures are updated.
The message from the event was:
The next five years offer a major planning window. Don’t wait. Work out what you can afford to salary sacrifice now. Speak to your accountant.
Personal Tax & Inheritance Tax Thresholds Frozen to 2031
This point always gets a reaction.
Thresholds that haven’t moved much since the mid-2000s, like the £12,570 personal allowance and the £325,000 inheritance tax band, will remain frozen until 2031.
We described this on Monday as the government’s most reliable tax-raising tool, regardless of which party is in power. Frozen thresholds quietly push more people into higher tax bands every year.
Dividend Tax: A Very Odd Change Coming in 2026
One of the strangest Budget outcomes is the adjustment to dividend tax rates:
- +2% at basic rate
- +2% at a higher rate
- No change at additional rate. This is bizarre.
During the event, we discussed how unusual this structure is, especially the decision to leave the top rate untouched. The explanation circulating in financial policy circles relates to concerns about market distortion at the highest levels of investment.
The practical takeaway:
If you’re expecting to take dividends and you’re not an additional-rate taxpayer, the next couple of months are your opportunity.
Property Income & Mortgage Interest Relief: More Complexity Ahead
Property income has been complicated for years, but from 2027, the mortgage interest tax credit will rise from 20% to 22%.
This change interacts with salary levels and pension contributions in ways that create new planning opportunities but also introduce more complexity.
What’s obvious is that landlords with mortgages will need personalised planning to take full advantage of the shift.
Salary vs Dividends: A Turning Point for Company Owners
Perhaps the most unexpected modelling outcome discussed on Monday was this:
For the first time in decades, salaries may become more attractive than dividends for many small business owners.
For someone drawing around £100k through a limited company, the “optimal” salary could rise dramatically next year.
This represents the biggest change in remuneration planning for owner-managers in more than twenty years.
It is now so important to talk about this and start looking at remuneration planning from next April onwards.
Closing Thought
Monday’s event made one thing clear:
The most important changes this year are not the headline-grabbers.
They’re the structural, technical shifts tucked inside the Budget.
These quieter adjustments like salary sacrifice rules, dividend changes, frozen thresholds, and tightening of the EV allowance, are the ones that will shape tax planning for years.
Please get in touch with your usual manager so we can discuss these topics further and put an appropriate plan in place.
If you are not yet working with us, here’s how we can help you.
You can also read our longer blog on the Autumn Budget 2025.