Budget 2025

How will the budget increase Tax and National Insurance for employers and individuals  from April 2026 –

  • Dividend Income to be taxed at an additional 2% (up from 8.75% to 10.75% for basic rate taxpayers and from 33.75% to 35.75% for higher rate taxpayers)
  • Savings Income will be taxed at an additional 2% (22% for basic rate taxpayers and 42% for higher rate taxpayers)
  • Rental Income will be taxed at an additional 2% (22% for basic rate taxpayers and 42% for higher rate taxpayers)
  • National Living Wage to rise to £12.71 per hour for employees aged 21 and over and £10.85 per hour for those aged 18 to 20 years

Increases will be incurred by these measures for future years –

  • Pensions will be subject to National Insurance will apply to Salary Sacrifice Pension Contributions if more than £2000 per annum (from 2029)
  • Income Tax thresholds will be frozen for a further 3 years (until 2031)

Koreen is a Member in Practice of The Association of Accounting Technicians, which means that she is both licensed and regulated by the AAT. However Koreen is also a Fellow Member which is an acknowledgement by the AAT of her senior status in terms of knowledge and experience.