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Budget at a Glance 2025

After numerous rumours and an early leak of the Office of Budget Responsibility’s report on their findings, Rachel Reeves delivered her 2025 Budget on 26 November 2025 which she stated took the ‘fair and necessary choices to deliver on the government’s promise of change’.

Personal Tax

The government is extending the freeze of the Income Tax Personal Allowance, higher rate threshold and additional rate threshold from April 2028 to April 2031.

Several changes were announced to the rates for property, dividend and savings income:

  • The government will create separate tax rates for property income. From 2027/28, the property basic rate will be 22%, the property higher rate will be 42%, and the property additional rate will be 47%.
  • From 2026/27, the ordinary and upper rates of taxation on dividends will be increased by 2% to 10.75% and 35.75%. The additional rate for dividend income will remain unchanged at 39.35%.
  • From 2027/28, all rates applicable to savings income will be increased by 2%. The savings basic rate will become 22%, the savings higher rate will become 42% and the savings additional rate will become 47%. The Starting Rate for Savings will be retained at £5,000 for 2026/27 and will stay at this level until 5 April 2031.

In addition, certain reliefs will now only be applied to property, savings and dividend income after they have been applied to other sources of income. This change will take effect from 6 April 2027.

From 6 April 2027, the annual Individual Savings Account (ISA) cash limit will be set at £12,000, within the overall annual ISA limit of £20,000. Savers over the age of 65 will continue to be able to save up to £20,000 in a cash ISA each year. Other limits remain £4,000 for Lifetime ISAs and £9,000 for Junior ISAs and Child Trust Funds until 5 April 2031.

The Primary Threshold, Secondary Threshold, Lower Profits Limit, Upper Earnings Limit (UEL) and Upper Profits Limit for National Insurance contributions (NICs) will be maintained at their current levels until April 2031 as well as other employer NICs relief thresholds aligned with the UEL. The Lower Earnings Limit, Small Profits Threshold and the rates of voluntary Class 2 and Class 3 contributions will be increased by 3.8% from 2026/27. In addition, from 6 April 2026, the government will remove access to pay voluntary Class 2 NICs abroad and increase the initial residency or contributions requirement to pay voluntary NICs outside of the UK to ten years.

Employment

The government will charge employer and employee NICs on pension contributions above £2,000 per annum made via salary sacrifice. This will take effect from 6 April 2029.

The government will extend the employer NICs relief for employers hiring veterans in their first civilian role to April 2028.

From 1 April 2026, the National Living Wage will increase by 4.1% to £12.71 per hour. The National Minimum Wage for 18-20 year olds will also increase by 8.5% to £10.85 per hour and for 16-17 year olds and apprentices by 6.0% to £8.00 per hour.

In terms of benefits, the government will increase the Van Benefit Charge and Car and Van Fuel Benefit Charges by CPI from 6 April 2026. The government will delay changes to benefit in kind rules for Employee Car Ownership Schemes until 6 April 2030.

Capital Taxes

The Inheritance Tax nil rate bands are already set at current levels until April 2030 and will stay fixed at these levels for a further year until April 2031.

The forthcoming combined allowance for the 100% rate of agricultural property relief and business property relief will also be fixed at £1 million for a further year until 5 April 2031. Any unused £1 million allowance will be transferable between spouses and civil partners from 6 April 2026, including if the first death was before 6 April 2026.

The government will reduce the Capital Gains Tax relief available on qualifying disposals to Employee Ownership Trusts from 100% of the gain to 50%. This will take effect from 26 November 2025.

Business

The government will introduce a new 40% First Year Allowance (FYA) for main rate expenditure (including most expenditure on assets for leasing and expenditure by unincorporated businesses) from 1 January 2026. From 1 April 2026 for Corporation Tax and 6 April 2026 for Income Tax, main rate writing down allowances will reduce from 18% to 14%.

The government will extend for a further year the 100% FYA for qualifying expenditure on zero emission cars and electric vehicle (EV) chargepoints until 31 March 2027 for corporation tax purposes and 5 April 2027 for Income Tax purposes.

Eligibility of companies for the EMI scheme will be expanded. The government will increase the employee limit to 500, the gross assets test to £120 million, and the company share option limit to £6 million from April 2026.

Access to the Venture Capital Trust (VCT) and Enterprise Investment Schemes (EIS) will also be extended to more companies. The government will increase the VCT and EIS company investment limit to £10 million (£20 million for Knowledge Intensive Companies (KICs)) and increase the lifetime company investment limit to £24 million, and £40 million for KICs. The gross assets test will increase to £30 million before share issue, and £35 million after, from April 2026. However, the rate of VCT Income Tax relief will decrease to 20% from 30%.

A new UK Listing Relief will be introduced which provides a three-year exemption from Stamp Duty Reserve Tax for companies listing in the UK, effective from 27 November 2025

Other matters

  • The government will introduce the High Value Council Tax Surcharge, a new charge on owners of residential property in England worth £2 million or more, starting in 2028/29.
  • The government will extend the temporary 5p fuel duty cut for a further five months, with the cut being reversed in three stages from September 2026.
  • The two-child limit in the Universal Credit Child Element will be removed from April 2026.
  • The government will strengthen HMRC powers to tackle fraud within the Construction Industry Scheme, increase the rewards paid to informants of high-value tax fraud and introduce new powers to tackle promoters of marketed tax avoidance.
  • However, following consultation, the government will not regulate tax advisers and will work in partnership with the sector to raise standards in the tax advice market.

For more information about how the Budget will affect you and your business contact our team.

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Special commemorative baton passes through Altrincham and Hale as part of Railway 200 celebrations

Altrincham and Hale played host to a special moment in the nationwide Railway 200 celebrations this week, when walkers carried a commemorative baton as part of a six-day relay along the Mid Cheshire Line – and we were delighted to be involved.

The relay walk, organised by the Mid Cheshire Community Rail Partnership, is one of many events markings 200 years since the world’s first passenger railway opened in 1825.

On Wednesday 24th September the baton travelled through Navigation Road into Altrincham before continuing on to Hale, Ashley, Mobberley and Knutsford stations. The baton will progress on Thursday, Friday and Saturday all the way to Chester.

The Mayor of Trafford (Councillor Jane Brophy), Conner Rand MP, Altrincham Court Leet,  rail enthusiasts and business leaders including Murray Patt, the founder of Hale-based accountancy firm Alexander Knight & Co, joined in the celebrations.

Our friends at Altrincham Today covered the story extensively on social media, reaching thousands of local residents.

The local handover of the baton was particularly meaningful for Alexander Knight & Co because we sponsor Hale station and we are proud to support local community initiatives.

 Murray Patt, founder of Alexander Knight & Co, said:

“We are delighted to support Railway 200 and to be part of such an important celebration of our region’s railway heritage. The railway has connected communities, businesses and people for two centuries, and we’re proud to play a role in supporting the future of this vital network.

“Watching the baton being carried through Altrincham and on the doorstep of our local station at Hale, was a great reminder of how rail continues to bring people together.”

Railway 200 is a year-long, partnership-led campaign celebrating the bicentenary of the Stockton & Darlington Railway. It aims to showcase how rail has connected communities, supported economic growth and transformed daily life over two centuries, while also inspiring a new generation to explore careers in rail, engineering and transport.

THANK YOU TO THE ORGANISERS AND TO EVERYONE WHO TOOK PART IN THE CELEBRATIONS.

Altrincham and Hale accountants celebrate Railway 200

 

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Alexander Knight & Co advises on successful trade sale

We’re proud to have advised on the successful sale of Kids at Heart, a well-established childcare business based in Yorkshire, to a trade buyer.

Led by long-standing client Julie Shaw, Kids at Heart has been delivering high-quality early years education for over two decades. The business has grown to encompass three nursery settings, operating under two limited companies and one sole trader structure.

Over the years, Julie and her team built a trusted reputation for nurturing care, educational excellence, and strong community relationships.

Alexander Knight & Co provided comprehensive financial, tax and strategic advice throughout the transaction process, helping to structure the deal in a way that protected Julie’s interests, maximised value, and ensured a smooth handover to the new owners.

Julie Shaw, founder of Kids at Heart, said:

“After many years building the business, it was the right time to take a step back. I’m incredibly grateful to the team at Alexander Knight & Co for their advice, professionalism and support throughout the sale. They made a complex process feel manageable and helped me achieve a really positive outcome.”

This was a multi-faceted transaction involving multiple entities, regulatory considerations, and detailed due diligence. We’re pleased to have achieved a fruitful and well-earned exit for Julie – one that reflects the legacy she’s built and enables a new chapter for the business under trade ownership.

Supporting owner-managers through every stage

Helping business owners like Julie navigate important transitions is exactly why we do what we do. Whether it’s planning for growth, succession, or sale, our team works closely with clients to provide clear, strategic advice tailored to their goals.

Murray Patt, founder of Alexander Knight & Co, said:

“We were proud to work alongside Julie on this deal. She’s built a brilliant business with a strong local reputation, and we’re pleased to have supported her in achieving a successful exit. It’s always rewarding to help our clients realise the value they’ve worked so hard to create.”

We wish the new owners of Kids at Heart every success as they take the business forward and we extend our thanks to Julie for her trust and partnership over the years.

If you’re a business owner thinking about the next chapter whether that’s scaling up, selling, or succession planning – speak to us! We’re here to help you make the right decisions at the right time.

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Volunteering at Hale station

Back in May, we were delighted to be announced as the new official sponsor of Hale railway station. we’re excited to share some charitable initiatives we will be getting involved in through this new partnership.

As a proudly Hale-based accountancy practice (whose office sits directly above the railway line!), Alexander Knight & Co already has a close connection to the historic Hale station, which originally opened in 1862. Like the station, which serves as an important transport link between Cheshire and Manchester, we are proud to serve our North West clients, many of whom are located along the mid-Cheshire line.

Being part of the local community – and giving back to it – is something which means a lot to us, and that’s why we’re really excited about this new venture. And it’s a real source of pride to drive past and see the bright orange of our logo right there alongside the station sign!

Murray Patt, founder of Alexander Knight & Co, says:

“Hale station plays an essential role in both our daily lives and business operations – we rely on it for our team’s commute to the office and client visits, like many other companies and residents in the area. The chance to give back to the station in this way, demonstrating our commitment to the local Hale/Altrincham community we’re so proud to be a part of, is really special.”

Importantly for us, our sponsorship of Hale station goes beyond a financial contribution. Our team are keen to invest their time – and quite literally lend a hand – into preserving and improving the station, ensuring its future as an important local landmark which residents will enjoy using for years to come.

Our partnership will focus on:

  • Strengthening the station’s social and environmental impact Our team are excited to get involved in everything from restoration projects to regular station upkeep, where we hope to put our green fingers to good use in creating a more welcoming and sustainable space for the community.

 

  • Encouraging public commuting By enhancing the station experience, we aim to ensure that commuters are more inclined to use the railway, and in doing so, support the use of sustainable public transport – a goal which aligns with the ESG principles that guide our own practices, which you can read about here.

 

  • Connecting the local community We hope that this partnership between a local business and a key transport hub will inspire residents to support similar incentives across the area. By working together, we aim to foster a stronger sense of shared pride and identity within our neighbourhood.

We can’t wait to get stuck in – watch this space for photo updates as we roll up our sleeves!

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Faster, smarter payroll

It’s now been four months since we transitioned our first batch of clients over to Modulr. We’re already seeing big improvements in efficiency, faster processes and its modern approach to finance and payroll in particular.

At Alexander Knight & Co, we’re always looking for ways to help our clients save time, reduce admin, and improve financial processes. That’s why we’ve introduced clients to Modulr, a modern payments platform that’s already making a real difference.

Faster, smarter payroll

Payroll can often be one of the most time-consuming and stressful parts of running a business. For SMEs in particular, the burden of manually processing payroll payments can create unnecessary admin and increase the risk of errors.

With Modulr, payroll becomes seamless. By connecting directly to your Alexander Knight & Co payroll software, Modulr automates the payment process – removing the need to manually enter details into banking portals. The result? Your employees are paid accurately, securely, and on time, every time.

Why our clients love it

  • Efficiency gains: No more duplicate data entry or delays.
  • Security built-in: Payments are processed through Modulr’s secure platform.
  • Accuracy and reliability: Payroll payments are made without errors or missed deadlines.

Supporting your growth

SMEs thrive when they can focus on growth, not admin. By adopting Modulr, our clients are already seeing faster processes, reduced stress, and greater confidence in their payroll systems.

We’re proud to be working with Modulr to bring modern financial solutions to the businesses we support.

If you’d like to learn more about how Modulr could streamline your payroll, get in touch with our team at Alexander Knight & Co today.

 

 

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Are you missing out on up to £10,500?

IN APRIL THIS YEAR, THE EMPLOYMENT ALLOWANCE WAS RAISED TO £10,500. BUT ARE YOU CLAIMING IT?

Employment Allowance lets eligible employers offset their National Insurance contributions, which they pay annually to HMRC. The scheme aims to support smaller businesses and charities by reducing their employment costs – however this comes amidst a rise in the employer National Insurance rate (to 15%), which will adversely affect many organisations.

The allowance rate before April 2025 was £5,000 each year – so the jump to £10,500 is a big one and will hopefully balance out this National Insurance rate rise.

So what does this mean for your business?

  • It means you’ll pay less employers’ National Insurance each time you run your payroll – until either the £10,500 has been reached, or the tax year ends, whichever happens first.
  • You can only claim against your employers’ National Insurance liability up to a maximum of £10,500 each tax year. You can still claim the allowance if your annual contribution amount is less than £10,500.
  • The change should hopefully lead to more stable cash flow in and out of your business. It should also put businesses in a healthier position to grow, and able to hire more employees to support that growth.

If we manage your payroll, we always claim this for you so no action is necessary.

For our non-payroll clients we have discovered that not everyone is claiming it and they are potentially losing out (up to £10,500.)

Speak to us for more details if you are concerned about missing out!

 

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“Show us your ID!”

From 18 November 2025, all company directors and persons with significant control (PSCs) in the UK will be required to verify their identity with Companies House. This is part of a major reform under the Economic Crime and Corporate Transparency Act, aimed at strengthening the integrity of the UK’s corporate registry.

Why?

The UK has long been recognised as one of the easiest places in the world to set up a company. Unfortunately, that simplicity has also been exploited by fraudsters and criminals setting up fake or illegitimate companies to commit fraud, launder money, or mislead the public.

This new ID verification process is designed to:

  • Prevent fraudulent companies from being set up with false director information
  • Improve the accuracy of the Companies House register
  • Deter criminals from using UK companies for illegal activity
  • Build trust in UK businesses, especially among international partners and investors

At its core, this reform is about making sure that the people running UK companies are who they say they are.

Who needs to verify?

  • New directors and PSCs will be required to verify their identity at the point of incorporation or appointment.
  • Existing directors and PSCs will have 12 months from the 18 November start date to complete the process and must do so before filing their next confirmation statement.
  • There is a 14-day deadline for newly appointed PSCs to verify after being recorded.

We recommend:

  • Verifying early – Don’t leave it until just before your confirmation statement is due.
  • Being cautious – Only respond to legitimate notifications and avoid scams or phishing emails related to this process.
  • Getting in touch with us if you’re unsure – we may be able to verify your ID for you.

If you are a client of Alexander Knight & Co, rest assured we’ll help you stay fully compliant with the new regulations. If you have any questions about what you need to do, just get in touch with our team.

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Alexander Knight & Co is proud to welcome the MGI UK & Ireland Conference to Manchester

We are delighted to announce that Alexander Knight & Co will serve as the host city firm for the 2025 MGI UK & Ireland Partners, Directors & Managers Conference, taking place in Manchester from 19 to 21 November at the Hyatt Regency.

As members of the MGI Worldwide network, we are honoured to welcome colleagues not only from the UK and Ireland but also from across mainland Europe and further afield to Manchester.

Manchester is a vibrant, forward-looking city with a proud industrial heritage and an unmistakable entrepreneurial spirit, and is the perfect backdrop for the conference.

Conference format and highlights

The conference kicks off on Wednesday 19 November with an informal drinks reception and dinner, setting the stage for meaningful connections.

A full day of sessions follows on Thursday 20 November, continuing until Friday lunchtime (21 November). Delegates wishing to extend their stay can join a private, guided walking tour, followed by dinner and further networking opportunities.

Due to Murray Patt’s love of football and a result of some very generous clients of Alexander Knight & Co some attendees will also be going to watch the Manchester United v Everton football match at Old Trafford on Saturday after the conference.

This year’s theme, “The changing world of accountancy and client expectations”, promises timely insights into how our profession is evolving and how we can stay ahead in a dynamic market.

Murray Patt, founder of Alexander Knight & Co.

“We’re thrilled to welcome our fellow MGI UK & Ireland members to Manchester this year. This is a brilliant opportunity to showcase not only the strength of our professional network, but also the energy, creativity and business culture that make Manchester such a great place to be. We’re looking forward to insightful sessions, meaningful connections and a few memorable evenings too.”

We’ll also be providing our personally curated recommendations for restaurants, bars, historic pubs, and other things to see ensuring every delegate enjoys the very best of Manchester’s hospitality.

Why this matters to us

At Alexander Knight & Co, we pride ourselves not just on our technical expertise, but on being a connected, independent firm that truly values relationships. Hosting this conference on home ground brings fresh perspectives directly into our offices and into your businesses. It’s an opportunity to showcase our city, our network, and our belief in collaboration, connection, and forward-thinking leadership.

We look forward to welcoming you in November!

 

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Alexander Knight & Co celebrates 13 years in business

Next month marks a proud milestone for Alexander Knight & Co – we’re officially celebrating 13 years in business.

From our very first day in 2012 to now, it’s been an incredible journey of growth, evolution, and partnership.

What began as a boutique accountancy practice with a vision to offer high-quality accountancy services to ambitious business owners has flourished into a trusted firm working alongside a diverse range of clients across multiple sectors, including international companies.

A sincere “thank you”

We’d like to take this opportunity to say a heartfelt thank you to all of our clients, professional contacts, partners, and colleagues who have supported us throughout the years.

Whether you’ve been with us from the very beginning or joined us more recently, your trust, collaboration, and continued business have played a crucial role in our success. We’re proud to have built long-standing relationships based on integrity, mutual respect, and shared ambitions.

In a sector where consolidation is happening at pace, we’re proud to remain truly independent. At Alexander Knight & Co, our independence means we’re free to make decisions based solely on what’s best for our clients – not shareholders or corporate parent companies.

It allows us to maintain long-term relationships, offer tailored advice, and provide a consistently high level of personal service.

In a world of mergers and mega-firms, that independence matters more than ever. It gives our clients confidence that they’re getting advice from a team that knows them, values them, and puts their business success first. We know our clients value this approach.

Reflecting on the journey

Over the past 13 years, we’ve:

  • Helped clients grow, restructure, and sell their businesses
  • Supported start-ups from incorporation through to investment and acquisition
  • Advised on complex tax planning strategies, audits, and corporate structures
  • Navigated major legislative and economic changes – including Brexit, the Covid-19 pandemic, and ongoing shifts in HMRC policy

At every step, our mission has remained the same: to provide clear, commercially sound advice that empowers our clients to make confident decisions.

“When I founded Alexander Knight & Co in 2012, I wanted to create a firm that delivered more than just compliance. I wanted to build real relationships with clients – to truly understand their businesses and help them grow. I’m incredibly proud of what we’ve achieved over the past 13 years. I want to thank everyone especially our loyal clients and professional network for their ongoing support and trust in us.”
– Murray Patt, Founder & Director

As we move into our 14th year, our focus remains the same: delivering smart, proactive advice tailored to each client’s goals. We’re continuing to invest in our team, our technology, and our services to ensure we stay ahead in a rapidly changing financial world. We’re excited about the future – and we’re looking forward to many more years of working alongside you.

Thank you again for being part of our journey.

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We did the Altrincham 10k 2025 for two charities

In the last few months, the team at Alexander Knight & Co has been preparing for this year’s Altrincham 10k run. On Sunday 7th September, eight of us put our training to the test and joined thousands of other locals on the run – and we couldn’t be prouder of how we did!

We were incredibly proud to represent Alexander Knight & Co at this year’s Altrincham 10k – a fantastic opportunity to immerse ourselves in the local community and be part of an initiative that truly showcases Altrincham in all its glory!

The journey to race day was both demanding and rewarding. A mixture of newbies and seasoned runners, the team leaned on each other for encouragement, motivation, and were driven by a shared sense of purpose as the race day loomed.

And what a day it was! We were relieved to be running on a sunny morning in advance of the heavy rain that followed all afternoon.

Accountants in Altrincham – proud to run our local 10k!

Smartly dressed in our fresh Alexander Knight & Co branded running tops, we were raring to go at the starting line near Altrincham Hospital.

The route took us up the Downs, into Bowdon and Hale, past some of our favourite coffee shops, then along the main road – even running past our very own Hale Road office, with family and friends stationed there to power us on through the rest of the race.

At the halfway point we found ourselves in the country lanes of Hale Barns and then we ended the race back in the town centre to be greeted by the warm support and applause of Altrincham residents.

Murray Patt, founder of Alexander Knight & Co, reflected:

“That race was incredibly challenging, pushing each of us to our limits. But I’m hugely proud of the team for demonstrating that their abilities stretch beyond the confines of the office! It was a memorable day that we will treasure for a long time. Crossing that finish line says everything about who we are as a team – we’re committed, determined and we throw ourselves into every challenge.”

And what’s more, to commemorate our achievements, the team have chosen to make two charitable donations – to the Children’s Adventure Farm Trust (CAFT) and the LGBT Foundation – both worthy and inspiring causes.

 

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