Below is a summary of some of the measures announced in the 2025 Autumn Budget we feel are relevant to temporary workers, MSPs and recruitment agencies, and what they could mean in practice.
Tax Threshold Freeze Extended to 2031
Income Tax and NI thresholds remain frozen.
Planning ahead becomes even more important, and proactive advice may help individuals stay in control.
Salary Sacrifice Pension Cap Reduced to £2,000 (from 2029)
A notable change for higher earners, though several years away and subject to potential political change.
If introduced, contractors may need to consider additional saving strategies.
Dividend, Property and Savings Tax Rates Increasing
Dividend and savings tax rates will rise by 2 percentage points, with new separate property income tax rates.
Early preparation will help minimise surprises and support informed planning.
Increased HMRC Compliance and Enforcement
HMRC gains expanded powers around tax avoidance and supply-chain compliance.
This reinforces the need to work with reputable, compliant partners. Using FCSA-Accredited companies who have SafeRec Certification offers the strongest starting point and helps create a fairer operating environment.
Changes to Corporation Tax Allowances
The main writing down allowance reduces from 18% to 14% from 2026, with a new 40% first-year allowance for most main-rate assets.
Directors of limited companies may benefit from reviewing future investment timing.
National Living Wage Increases (from April 2026)
• Over 21s: £12.71
• Ages 18–20: £10.85
• Ages 16–17 and first-year apprentices: £8.00
Electric Vehicle Taxation
A new per-mile charge for electric and plug-in hybrid vehicles will begin in 2028.
Users can plan ahead as more details emerge.
Other Measures
ISA reforms (from 2027), reduced CGT relief on EOT disposals, continued fuel duty freeze until Sept 2026, Mansion Tax for high-value homes, gaming duty changes and Motability scheme updates.
Our View at ForeTwo
This Budget brings a mix of change across tax, compliance and the wider economy. While some measures require adaptation, they also offer opportunities to plan smarter and strengthen compliance across the labour market.
At ForeTwo, our focus remains simple: supporting temporary workers, MSPs, recruitment agencies and end-hirers with clear guidance and fully compliant solutions delivered with a personal, professional approach. We’re here to help you navigate these updates.
If you have any questions or would like advice, our team is ready to help.
