As the real Rachel from accounts (thank you, The Telegraph), I’ve been following the noise building around next week’s Budget, and while the headlines are likely to sound calm and sensible, my prediction is that this will quietly cost business owners more.
This will not be a Budget that feels dramatic. It will be one that changes the rules in subtle ways – the kind that don’t make front-page news but still tighten the screws on business owners and higher earners.
Here is what I believe is coming, and what it could mean for you.
1. A stealth tax rise through fiscal drag
Don’t expect a major announcement on income tax rates, this was floated into the public domain but has now been scrapped. Instead, expect thresholds to stay frozen.
That means fiscal drag – a quiet tax rise that happens automatically when your income increases but the thresholds don’t move with inflation. The government doesn’t have to say anything. They just collect more as people drift into higher tax bands.
It’s simple, it’s effective, and it’s one of the easiest ways to raise revenue without ever calling it a “tax rise.”
For limited company directors and employees alike, that means less take-home pay and higher tax liabilities even though the rates look unchanged on paper.
2. Higher earners firmly in the crosshairs
Everything about the pre-Budget briefings points towards more pressure on higher earners, framed as “fairness” rather than a tax rise.
Expect adjustments to:
Dividend tax rates
Capital gains allowances
Pension tax relief or annual allowances
The language around “closing loopholes”
In other words, measures that sound targeted but will have broad implications for limited company owners extracting income through salary and dividends.
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If you want a finance partner who reads every Budget so you don’t have to, we can help you interpret the numbers, optimise your structure and plan for what’s next.
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3. Investment incentives (but more complexity attached)
Governments love to headline “support for business growth.” But read the small print and it often comes with extra paperwork, tighter definitions and time-limited schemes.
Expect talk of:
Enhanced capital allowances
Targeted support for investment in small businesses
Boosted R&D or training incentives
These measures are useful in theory but can become complex in practice. You may need to weigh up whether the administrative effort actually pays off.
4. A political push for ‘green growth’
With the focus on long-term sustainability and “future-proofing the economy,” there will almost certainly be incentives for greener business investment.
That could include tax breaks or grants for:
Energy-efficient upgrades
Low-carbon technology
Sustainable supply chain initiatives
For founders planning large capital projects, this could open opportunities — but also new reporting requirements to access the reliefs.
5. HMRC doubling down on digital compliance
This one won’t make the Chancellor’s speech, but it will appear in the supporting documents.
Expect continued expansion of digital compliance initiatives – more automation, real-time reporting, data-matching between systems, and increased penalties for late or incorrect submissions.
The message is clear: HMRC wants your data, wants it faster, and wants it to match across every system.
At striveX, we’re already helping clients prepare by introducing automated bookkeeping, cash flow forecasting and digital reporting tools. It keeps everything compliant while saving hours of manual admin each month.
Need help to tackle the changes?
If you want the full breakdown of what the Budget really means for you, join me for our live post-Budget webinar. I’ll walk you through every change, what to prioritise and how to protect your profit over the next 12 months.
P.S our clients attend for free!
My honest take
This will be a Budget that looks “sensible” on the surface but quietly tightens the rules underneath.
Not in the tax rates. In the thresholds.
Not in the headlines. In the allowances.
Not through bold announcements. Through quiet policy drift.
For business owners, the real impact will be felt in:
Higher personal tax bills due to frozen thresholds
Reduced allowances for dividends and capital gains
More admin and compliance cost pushed onto your business
If you want to protect your time and profits in the months ahead, now is the time to review your systems, your extraction strategy, and your overall financial efficiency.
