UK Budget 2025: What Employers Need to Know About Taxes, Pensions and Pay

On 26 November 2025, Chancellor Rachel Reeves delivered the UK’s Autumn Budget, a package with important implications for income tax, pensions, payroll and pay rates. Many of the changes will affect employers, HR teams, payroll providers, and global mobility programmes.

Income Tax Threshold Freeze
The Budget extends the freeze on personal income tax thresholds, including the personal allowance and higher-rate bands, until April 2031. This means employees may face higher effective tax rates as wages rise, even though nominal tax rates remain the same. Read More