Limited company directors have unique opportunities to optimise their tax position in 2025, but recent changes to dividend taxation mean it's time to review your salary-dividend strategy.
The 2025 UK Budget introduces frozen tax thresholds until 2031, caps on pension salary sacrifice from 2029, and increased taxes on investment income, meaning higher earners will face significantly larger tax bills by the end of the decade.
The UK Budget 2025 brings mixed news for small businesses, with permanently lower business rates for high streets but higher dividend taxes affecting most firms from 2025 onwards.
The Budget 2025 introduces a £2,000 cap on salary sacrifice pension contributions from April 2029, with National Insurance applying to amounts above this threshold, affecting around a quarter of current users.
We break down the key measures from Budget 2025, including extended tax threshold freezes, salary sacrifice changes, ISA reforms, and support for pensioners and lower-income families.
