Whether it is reviewing your budgets or modelling the financial impact of changes, we can help you plan for whatever the year ahead brings.
How will rising employment costs affect businesses?
The Autumn Budget 2025 struck businesses once again with the increase to the National Living Wage (NLW) and National Minimum Wage (NMW).
From April 2026, the increase in employee wages includes:
- National Living Wage (for 21 and over) – £12.71 per hour (up 4.1 per cent)
- National Minimum Wage for 18-20 year olds – £10.85 (up 8.5 per cent)
- National Minimum Wage for 16-17 year olds and apprentices – £8.00 per hour (up 6 per cent)
These changes will significantly affect businesses’ payroll costs and may result in employers having to reassess their staffing needs.
Alongside this, Income Tax and National Insurance thresholds are now frozen until 2031.
Fiscal drag will push more employees into higher tax bands and businesses may feel the pressure to offer higher salaries to make up for reduced take-home pay.
What are the changes to Business Property Relief (BPR)?
Recent changes to Inheritance Tax (IHT) reliefs are also creating new challenges for business owners.
From April 2026, Business Property Relief (BPR) will be capped. Business assets that previously qualified for 100 per cent relief will only receive 50 per cent relief on values above the new £2.5 million allowance.
Couples may benefit from a combined £5 million threshold, but business assets above this could be subject to IHT at 40 per cent.
For larger or fast-growing businesses, this raises serious concerns around liquidity and succession.
Without clear plans in place, future generations could be at risk of substantial tax bills with no clear way to fund this.
Your business may even be forced to sell assets, restructure or seek external investment to manage the costs.
How can we support your business?
The upcoming reforms may lead to difficult decisions being made, but the right financial support can help you understand your options and plan ahead.
Our professional team can forecast and model the financial impact of rising wages and potential IHT liabilities on your cash flow.
We can also provide tailored advice on your business’s accountancy, tax planning, payroll and asset management needs.
With the help of our business planning services, you can make informed decisions that support your growth and long-term success.
For any more information or advice, contact Lamont Pridmore’s team today on 0800 234 6978 or email info@lamontpridmore.co.uk.
