What the 2025 Autumn Budget means for your plumbing and heating business
As a busy plumbing and heating business owner, staying on top of tax and financial updates might not be high on your to-do list, but the Autumn Budget affects more than just numbers on a spreadsheet. It shapes how much tax you pay, how much profit you keep, and how smooth (or stressful) the next year of trading will be.
So, what’s changed, and what does it mean for your business?
We’ve broken it down into plain English, no fluff, no jargon, just what matters to you.
Want to see the full summary? Download our Autumn Budget 2025 overview here.
National Insurance cuts, what they really mean for you
One of the headline announcements was the cut in National Insurance Contributions (NICs) for both employees and the self-employed.
- If you’re on the payroll through your limited company, your personal NIC bill is dropping from 8% to 6% from 6th April 2025. That’s more take-home pay for you.
- If you’re a sole trader or partnership, Class 4 NICs are dropping from 9% to 6%. Again, this gives you a little more breathing room.
This won’t change the world overnight – but in a trade where every penny counts, it helps. And if you’ve got a few team members on payroll, they’ll notice it too. Could be the boost they need to keep morale high.
Full expensing made permanent
If you’ve ever hesitated before buying a new van, piece of kit or tools for the business, this might change your mindset.
The government has now made “full expensing” permanent. In short, this means that limited companies can deduct 100% of qualifying equipment costs from profits straight away, instead of spreading them over several years.
This applies to:
- New tools and equipment
- Plant and machinery
- Commercial vehicles (excluding cars)
While this doesn’t mean more cash in your pocket right now, it reduces your Corporation Tax bill by offsetting those big purchases against your profit.
Thinking of upgrading your equipment in 2025? Now could be the perfect time to do it – especially if you’re looking to improve efficiency on site or invest in growth.
A few other things worth knowing
- Fuel duty remains frozen: Good news for the van, not so great for the planet – but every bit helps when you’re clocking up miles between jobs.
- Making Tax Digital for Income Tax is still on track to roll out from 6 April 2026 for sole traders with income over £50,000. If you’re not on Xero yet, it’s time to seriously consider making the switch.
- R&D tax reliefs are changing: If you’re involved in innovation or renewables, this could be worth exploring – but speak to your accountant first.
How this Budget fits into the bigger picture
Here’s the thing: budgets like this aren’t about windfalls. They’re about setting the tone. And this Budget continues the government’s focus on encouraging investment, simplifying tax where they can, and nudging businesses to adopt tech like digital accounting systems.
For plumbing and heating business owners, the big takeaway is this: there are opportunities to be more tax-efficient, and to invest in your business while staying compliant.
But the key is knowing what applies to you, when to act, and how to make it all work with your wider business strategy.
That’s where we come in.
Start in control, not in the dark
If your head’s spinning with NICs, full expensing, and all the other moving parts of your plumbing and heating business, don’t worry – you’re not alone. The Autumn Budget may be out, but what really matters is how it’s applied to your business.
We’ve helped dozens of plumbing and heating businesses navigate these changes, make smart investments, and stay on the right side of HMRC.
Download the full Autumn Budget 2025 summary here.
Or better yet – drop us a line and we’ll walk you through it.
If you’re ready to get your plumbing and heating business running smoothly, from bookkeeping and VAT to tax planning and systemising your finances – drop us a message at info@togetherwecount.co.uk. We’re here to help with all your accounting needs.