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Feb 202620

Plan For 2026

budget, business plan, cashflow

PLAN FOR 2026

 

I hope everybody is getting back in the swing of things after Christmas and the slow start of January.

 

We were inundated with self assessments in January and now getting back to concentrating on what 2026 has to offer.

 

Just before Christmas we reviewed our 2025 making a note of everything we achieved in the year.  We also made a note of what wasn’t so positive to avoid bringing that into 2026.

 

Then we put our heads together as a team to come up with a wish list plan for 2026

 

By doing this each year we find it really concentrates the mind into working on what is the most important for our daily business and personal lives.  Being able to achieve these wish list goals really motivates you to work that little bit harder and focus on what’s important.

 

We saw through 2025 a number of businesses still fighting to make a living.

 

We also saw a large number bucking the trend and growing in 2025.

 

Looking at the companies and individuals making money last year and the things that separated them from everyone else.    They had a full handle on the cashflow.   They remained thrifty with the money even when times were good.

 

Not allowing suppliers and staffing costs to get out of hand.   Not over financing with high interest loans.   They also had money spare to put money into their pension plans.   Saving into the future and saving tax at the same time.

 

We’ve got a large number of statutory changes outside of our control for 2026.   National insurance changes.   Making Tax Digital for Income Tax affecting property and business owners with turnover over £50,000, and ID Verification for Companies House affecting every Limited company on the Companies House register.    It’s all big operational changes that we’re all having to comply with, and completely out of our control.

So my biggest bit of advice for the forthcoming year 2026.

 

Make a plan both Business and Personal.  

What are your priorities for this year.  Write them down.  People who write down their goals and wishes are far more likely to achieve them over someone who doesn’t write anything down.

 

Mark off as you achieve them, give yourself a pat on the back, believe me yourve earned it.   You can always add to the list if you are doing really well.

 

Review your overhead costs.  Business and Personal

If your Amazon spend has gone extreme, or your supplier has put a big increase on you, shop around.  Or decide do I really need that item.

 

Save some money for a rainy day, put money into your pension

I am seeing a lot of 40 years plus clients with no long term savings at all.

 

Pay off that high interest credit card, by over paying over time, you save a lot of interest charges.

 

Do something fun on your days off.   It doesn’t have to cost money to do it.

 

Have some me time.

 

Wishing you all a successful and healthy 2026.

 

 

Nov 202527

Budget 2025: Key Points

budget, general business
The release of this year’s budget comes later than usual, building even more anticipation as businesses across the country have waited eagerly to understand what it means for them. Now that it’s finally here, we can dive straight into the key points, highlighting the measures and tax changes that will have the greatest impact on businesses in the new financial year.

Minimum Wage


Minimum wage will increase from April 2026. The hourly rate for over 21s will rise by 50p to £12.71. Workers aged 18-20 will be seeing an 85p rise to £10.85. With plans for all adults to be on the same hourly rate. 

See table below for a comparison of the minimum wage.

 

21 and over

18 to 20

Under 18

Apprentice

Currently

£12.21

£10.00

£7.55

£7.55

From April 2026

£12.71

£10.85

£8.00

£8.00

Tax Thresholds


The chancellor has confirmed that both income tax thresholds and the equivalent National Insurance contributions thresholds will remain frozen for a further three years until April 2031.

That means the tax-free income threshold (our Personal Allowance) stays at £12,570. The last time the Personal Allowance was increased was prior to 2021, since then it has remained unchanged. 

If your total income in a tax year is £12,570 or less, you pay no income tax. Only the portion above that is taxed, so, someone earning £30,000 would pay income tax only on £17,430 at a rate of 20%.

Tax rate depends on your taxable income.

 

Taxable Income

Tax Rate

Personal Allowance

Up to £12,570

0%

Basic Rate

£12,571 to £50,270

20%

Higher Rate

£50,271 to £125,410

40%

Additional Rate

Over £125,410

45%

Pensions


Starting April 2029, the amount that can be paid into a pension via salary sacrifice while saving on National Insurance will be capped at £2,000. Any contributions above this limit will be treated like standard employee pension payments and will save on Income Tax and not National Insurance.

According to the OBR, removing these tax advantages from salary-sacrifice pension arrangements is expected to generate an additional £4.7bn in National Insurance revenue.

Individual Savings Accounts (ISA)


An ISA is a type of savings account where the interest you earn is completely tax-free. At the moment, you can save up to £20,000 each tax year in a cash ISA.

From April 2027, the Chancellor has announced that the annual cash ISA limit will be reduced to £12,000, the first decrease since 2017. The aim is to encourage more people to invest through stocks and shares ISAs instead.

These are the affects this will have:
  • If you’re 65 or over: Nothing changes. You can still put up to £20,000 a year into a cash ISA.
  • If you’re 64 or under: Your cash ISA allowance will drop to £12,000, but only for new contributions made from April 2027 onwards. Any savings already held in a cash ISA won’t be affected.
  • Stocks and shares ISAs: The annual limit stays at £20,000.
  • Overall ISA limit: Still £20,000 per tax year for everyone, meaning you can continue to spread your allowance across different ISA types as you wish.

Dividends, Savings Interest and Property Income


If you receive dividend income, your tax rates will increase from April 2026. This applies if you hold investments outside a stocks & shares ISA, your total income exceeds the Personal Allowance (currently £12,570) and your dividend earnings are above the annual dividend allowance (currently £500).

Dividend tax rates will rise by 2%: the basic rate will move from 8.75% to 10.75% and the higher rate from 33.75% to 35.75%. The additional rate will remain at 39.35%.

Savings interest tax rates will also rise but from April 2027. For those who do pay tax on savings interest, the basic rate will increase from 20% to 22%, the higher rate from 40% to 42%, and the additional rate from 45% to 47%.

Those earning income from property will see similar changes from April 2027. Although this income is currently taxed at the standard Income Tax rates, property income will be given its own set of rates. These will sit 2% above today’s general Income Tax rates: 22% for basic rate, 42% for higher rate, and 47% for additional rate.


The Chancellor confirmed that around 13 million pensioners will receive an above inflation rise to the state pension from April 2026. Both the new and old basic state pension will go up in line with average wage growth, currently 4.8% giving pensioners a meaningful cash increase.

If you’d like to discuss any part of the budget in more detail, please feel free to give us a call or send us a message, we’re here to help. You can read the full budget by clicking here. If you want support planning for the upcoming minimum wage increase and what it means for your business, we can guide you through the numbers so you’re fully prepared. Despite the challenges and changes ahead, keep pushing forward. With the right planning and mindset, we can all work towards a strong finish to 2025 and an even more successful 2026.

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