What Businesses Need to Know – October 2025 Updates from Birmingham Accountants
At Barnett Ravenscroft, trusted accountants in Birmingham, we help businesses stay one step ahead of key legislative and economic changes. Here are the important updates this month—from Budget planning to cyber security, AI investments, and HMRC spotlights—all curated for our clients across Edgbaston, Birmingham, and beyond.
Budget 2025 Date Set for 26 November
The Chancellor will deliver Autumn Budget 2025 on 26 November. This year’s Budget will likely address substantial fiscal challenges, and further tax changes are expected. Some key points:
Capital Gains Tax (CGT): CGT where Business Asset Disposal Relief (BADR) applies is due to rise from 14% to 18% from April 2026.
Inheritance Tax (IHT): Relief restrictions on business and agricultural property from April 2026, and unused pension funds will be included in IHT estates from April 2027.
What is likely to stay the same?
No rise in National Insurance, Income Tax rates, or VAT.
Corporation Tax to remain at 25%.
£1 million Annual Investment Allowance to be preserved.
Income Tax thresholds likely frozen until April 2030.
Potential changes could include:
NICs applied to landlords.
Pension tax relief capped at 30%.
Salary sacrifice exemptions potentially removed.
Lower VAT registration threshold.
Zero-rating VAT on domestic fuel.
If you would like to speak to chartered accountants in Birmingham about what this means for your business, we are here to help.
Advisory Fuel Rates for Company Cars – September 2025 Update
HMRC’s new advisory fuel rates include:
Petrol (up to 1400cc): 12p per mile
Diesel (1600–2000cc): 13p per mile
LPG (over 2000cc): 21p per mile
Fully Electric (home charging): 8p per mile
Fully Electric (public charging): 14p per mile
Employees using personal vehicles for business can still claim 45p per mile for the first 10,000 miles, then 25p thereafter. Employers can also reclaim VAT on the fuel portion, provided a valid invoice is kept.
This update is crucial for any employer reimbursing travel or managing company car policies.
Spotlight on Umbrella Companies: HMRC’s Warning
In June, HMRC issued Spotlight 71 regarding umbrella companies. These are intermediaries that employ temporary workers and may be operating under tax avoidance schemes.
Be cautious of arrangements where:
You receive two separate payments.
Part of your pay is labelled as a “loan,” “grant,” or “credit.”
There are deductions for seemingly unrelated services.
Birmingham accountants at Barnett Ravenscroft can advise on safe and compliant employment structures.
Building Cyber Resilience: Recovery and Defence
With cyber incidents on the rise, now is the time to strengthen your digital defences. For small businesses in Birmingham, cyber threats can lead to devastating downtime.
Action points:
Follow the Cyber Essentials framework (5 key controls).
Identify your critical systems—email, customer records, payment processing.
Create offline backups and disaster recovery plans.
Run “what-if” scenarios with your team.
Cyber risks impact your entire business—not just your IT. As your Edgbaston accountants, we recommend making cyber planning a board-level priority.
US Tech Giants Invest in UK AI – What it Means for Businesses
In a new UK–US Tech Prosperity Deal, Google, Microsoft, and Nvidia will invest over £38 billion into the UK’s AI and data infrastructure.
Alphabet (Google) is opening a £735m data centre in Hertfordshire.
Microsoft is building a new supercomputer in Essex.
Investments will support AI development in healthcare, business productivity, and public services.
For local businesses in Birmingham, this signals new opportunities—and challenges. Now is the time to explore AI tools that may improve your operations, customer service, or forecasting capabilities.
Stay ahead by keeping a watchful eye on how these tools evolve in the months ahead.
Let’s Talk – Your Birmingham Accountants Are Here to Help
Whether you are navigating tax planning, vehicle reimbursements, AI opportunities or cyber resilience, Barnett Ravenscroft is here to guide you. We are proud to be one of the most trusted accountants in Birmingham, supporting businesses across Edgbaston and the wider West Midlands.
Want to chat about any of the topics in this update?
📞 Call us on 0121 456 1999