Rachel Reeves delivered her November 2025 budget the other day... although, let’s be honest, thanks to the leaks, we mostly knew what was coming.

But knowing it’s coming doesn’t make it sting any less.

At the Curve office in Crawley, we’ve been busy crunching the numbers on our legendary meeting room whiteboard. What we’re seeing isn't one giant tax hike that grabs the headlines, but rather what we call "death by a thousand cuts." It’s a collection of small tweaks, freezes, and rate rises that, when added together, could significantly impact your bottom line.

Whether you run a hospitality business in Crawley town centre, a consultancy in Manor Royal, or you're a local landlord, here is the plain English breakdown of what the 2025 Budget actually means for you.

1. The Stealth Tax Rise… Thresholds Frozen Until 2031

This is the big one that affects almost everyone. The government has confirmed that Income Tax and National Insurance thresholds are now frozen until 2031.

Historically, your tax-free Personal Allowance (£12,570) rises with inflation. By freezing it for another six years, the government is essentially giving you a tax rise every single year.

• Why it matters: As your income (hopefully) rises with inflation, more of your money falls into taxable bands.
• The Pensioner Trap: This freeze is dragging more people into the tax net. For the first time, we are likely to see pensioners who rely solely on the State Pension being pushed into paying Income Tax.

2. The Dividend Bombshell (Urgent Action Required)

If you are a limited company director in West Sussex paying yourself via dividends, pay attention. This was the curveball of the budget.

From April 2026, Dividend Tax is increasing by 2% across the board.

• Basic Rate: Increases from 8.75% → 10.75%
• Higher Rate: Increases from 33.75% → 35.75%
• Additional Rate: Increases from 39.35% → 41.75%

Curve Insight: This change kicks in earlier than many other measures. That gives us a window of opportunity between now and April 2026. If your company has the available profits, it may make sense to declare dividends now at the lower rate. Please speak to us immediately if you want to explore this.

3. Minimum Wage And The Squeeze on Hospitality

We work with many fantastic hospitality businesses across Crawley and Horsham, and this announcement is going to be tough.

From April 2026, the National Living Wage (21+) rises from £12.21 to £12.71 per hour. There are also significant jumps for younger workers (16-17 year olds go up to £8.00/hr).

While a pay rise is great news for staff, for business owners, it’s a direct increase in overheads. And remember, it’s not just the wage—it’s the Employer National Insurance and Pension contributions on top.

By pushing wages up, the government is effectively bringing more low-paid workers into the tax system, generating more revenue for the Treasury but squeezing margins for local cafes, pubs, and shops.

4. Property and Savings: The 2027 Changes

Landlords and savers have been hit with a delayed fuse. From April 2027, we will see new separate tax structures for Rental Income and Savings Income.

Both will essentially face a 2% surcharge above standard income tax rates:

• Basic Rate: 22%
• Higher Rate: 42%
• Additional Rate: 47%

If you hold property in your own name rather than a limited company, your tax bill is set to rise.

5. The Electric Vehicle U-Turn

For years, the government has incentivised businesses to buy Electric Vehicles (EVs). Many of our clients have switched to electric to save on tax.

Now, the goalposts are moving. From April 2028, a new road tax system kicks in:

• Electric Cars: Taxed at 3p per mile
• Hybrid Cars: Taxed at 1.5p per mile

While we understand that road tax needs to cover road usage, targeting only EVs feels like a penalty for those who tried to do the right thing environmentally. Administering this "pay-per-mile" system is going to be an interesting challenge!

6. The Mansion Tax & ISA Limits

• Mansion Tax (April 2028): A new Council Tax surcharge for homes valued over £2 million. This will mostly affect London and the South East, costing homeowners an extra £2,500 - £7,500 per year.
• Cash ISAs (April 2027): The annual limit for Cash ISAs is dropping from £20,000 to £12,000 for those under 65.

Finally... Some Good News?

If the budget has left you feeling stressed, Rachel Reeves did offer one small concession: Bingo Duty has been abolished.

So, if all else fails, we can all head down to the bingo hall!

What Should You Do Now?

95% of Curve Accountancy clients will be affected by at least one of these changes. The "death by a thousand cuts" approach means you need to be sharper than ever with your financial planning.

Your Action Plan:

1. Review Dividends: Call us to see if you should extract profits before April 2026.
2. Check Staff Costs: If you run a payroll, let’s forecast the impact of the minimum wage rise on your cash flow.
3. Get the New Tax Card: We are printing our famous Curve Tax Cards right now—pop into the office to grab one for your desk.

Don't let these changes catch you off guard. If you're worried about how the 2025 Budget affects your business, let’s get you in front of the whiteboard and make a plan.