The Calm Before the Budget: Key Signals Business Owners Shouldn’t Ignore This Week
As we await tomorrow’s budget, anticipation is building around what Chancellor Rachel Reeves will announce on Wednesday, 26 November — and what it will mean for businesses across the UK and Northern Ireland.
While no tax changes have been confirmed, several clear signals from the Treasury, economic data, and recent ministerial comments point to the direction of travel. For business owners, this week isn’t about guessing outcomes — it’s about understanding the landscape and preparing for potential change.
Here are the key themes worth watching as we head into Budget Day.
1. The State of Public Finances: The Real Driver Behind This Budget
Government borrowing remains significantly higher than expected this year, increasing pressure on the Chancellor to raise revenue.
This makes threshold freezes, tightened reliefs, and adjustments to existing tax structures more likely than large-scale headline tax rises.
What this means for businesses:
Your tax burden may rise indirectly, even if rates remain the same.
Cashflow planning should assume less fiscal headroom in 2026.
2. Income Tax & Fiscal Drag: The Quiet Revenue Raiser
There is growing expectation that the freeze on personal tax thresholds will continue. This has been one of the most effective ways for governments to increase revenue without changing tax rates.
For directors and shareholders:
You could move into a higher tax band without any change in salary or dividends.
Profit extraction strategies may need to be reviewed before year-end.
3. Capital Taxes Under Review
Speculation continues around potential adjustments to:
Capital Gains Tax rates
Business Asset Disposal Relief
Inheritance Tax rules
These areas are increasingly being examined in the context of Labour’s goal to ensure “those with the broadest shoulders contribute more.”
For business owners:
If you are considering a sale, transfer, or reorganisation, timing matters.
Estate and succession planning should be revisited this week.
4. LLPs, Partnerships and Professional Firms in the Spotlight
One of the most widely discussed possibilities is the introduction of employer’s NICs for LLP members — a structural change that would significantly impact accountancy firms, solicitors, architects, and other professional partnerships.
Signals to watch:
Any reference to “alignment,” “modernisation,” or “closing structural gaps” will be meaningful.
LLPs may need to reassess their structure depending on announcements.
5. A Tougher Compliance Environment
HMRC’s recent activity — including targeted letters around marginal relief and associated companies — suggests a shift towards stricter enforcement.
Regardless of Budget changes, businesses should expect:
More compliance checks
More automated HMRC data matching
Less tolerance for inaccuracies in corporation tax filings
Digital accounting and precise reporting will continue to matter more than ever.
What Businesses Should Do This Week
Instead of reacting to headlines after the Budget, business owners can take smart steps now:
✔ Review your personal tax position
✔ Check your profit extraction strategy
✔ Revisit your capital allowance and investment plans
✔ Ensure your forecasts are up to date
✔ Review LLP or partnership structures if relevant
✔ Ensure digital records are clean and compliant ahead of year-end
Being prepared does not require prediction — just good planning.
Exchange Will Be Ready on Budget Day
Our team will be analysing the Budget in real time on Wednesday and breaking down exactly what every announcement means for:
Limited companies
Directors
Shareholders
LLPs and partnerships
Small and medium-sized Northern Ireland businesses
We’ll turn the technical updates into clear, practical guidance.
If you’d like us to review your tax or business structure before Wednesday — or immediately after the Budget — we’re here to help.
📞 028 9263 4135
📧 info@exchangeaccountants.com
