Head of Tax at BDO NI responds to Autumn Budget, citing ‘risks to manage and opportunities'
Head of Tax at BDO NI responds to Autumn Budget, citing ‘risks to manage and opportunities'
Lorraine Nelson, Tax Partner at BDO Northern Ireland (BDO NI) has described today’s Autumn Budget statement from Chancellor Rachel Reeves as “one with many tweaks, but we’ll have to wait a little before seeing them come to fruition.”
“This Budget was about steadying public finances whilst trying to ease pressure on working households,” comments Lorraine Nelson.
“It is clear it will have a real impact on how people in Northern Ireland live, work and do business. For many, including several of our clients, the headlines will be the changes to income tax rate for dividends, interest and property income alongside fiscal drag on thresholds and increased costs for employers, combining the restriction on pension salary sacrifice and increases to National Minimum Wage.”
Key Budget takeaways, as outlined by Lorraine Nelson, include:
“BDO NI will be helping clients understand who is most affected, what this means for take‑home pay and benefits, and where there may be scope to plan ahead rather than react after the event.”
“The impact of reduced relief for employers will only put additional stress tests on bottom line numbers for entrepreneurs. These changes materially influence whether businesses can afford to hire, invest or award pay rises – all of which feeds straight back into the local economy.”
“Whilst there was fear that ISA limits would be decreased, these remain at £20k, however, until you are 65, £8k must be within a stocks & shares ISA. Outside of ISA limits, any tax on interest income will increase by 2% from April 2027. In all the triad of passive income were increased by 2%, with dividend tax also rising from an earlier date of April 2026.”
In terms of navigating the impact of the Budget, Lorraine Nelson underlines how crucial it will be for businesses to assess the full picture. “Our message is simple: do not make decisions based on the headlines alone. Once the dust settles, there will be both risks to manage and planning opportunities to consider.”
For ongoing updates or to arrange a consultation to assess the Budget's impact on your business, follow BDO NI on social media or contact the BDO NI Tax Team.
“It is clear it will have a real impact on how people in Northern Ireland live, work and do business. For many, including several of our clients, the headlines will be the changes to income tax rate for dividends, interest and property income alongside fiscal drag on thresholds and increased costs for employers, combining the restriction on pension salary sacrifice and increases to National Minimum Wage.”
Key Budget takeaways, as outlined by Lorraine Nelson, include:
- Personal tax and cost of living
“BDO NI will be helping clients understand who is most affected, what this means for take‑home pay and benefits, and where there may be scope to plan ahead rather than react after the event.”
- Business, employers and investment
“The impact of reduced relief for employers will only put additional stress tests on bottom line numbers for entrepreneurs. These changes materially influence whether businesses can afford to hire, invest or award pay rises – all of which feeds straight back into the local economy.”
- Property, wealth and pensions
“Whilst there was fear that ISA limits would be decreased, these remain at £20k, however, until you are 65, £8k must be within a stocks & shares ISA. Outside of ISA limits, any tax on interest income will increase by 2% from April 2027. In all the triad of passive income were increased by 2%, with dividend tax also rising from an earlier date of April 2026.”
In terms of navigating the impact of the Budget, Lorraine Nelson underlines how crucial it will be for businesses to assess the full picture. “Our message is simple: do not make decisions based on the headlines alone. Once the dust settles, there will be both risks to manage and planning opportunities to consider.”
For ongoing updates or to arrange a consultation to assess the Budget's impact on your business, follow BDO NI on social media or contact the BDO NI Tax Team.