I hope you had a restful summer break. September often feels like a natural time to re-energise and approach the changing season with fresh vigour, and I hope you’re feeling ready for the months ahead. This month’s update focuses on some practical tax matters and upcoming changes that may be relevant to you.
The 2025 Budget
The government has announced that the 2025 Budget will be held on 26 November 2025. With plenty of notice, this means more time for speculation and “predictions” on social media and in the press – the Budget rumour machine is in full flow.
As always, we’ll be keeping a close eye on things and will provide a summary, usually the day after the Budget. In the meantime, we hope to reassure you to keep calm and avoid any knee-jerk reactions. We don’t advise acting on speculation, only doing what is in the best interests of you and your plan, in the context of the known rules.
If you’re worried or have specific questions, please contact your Financial Planner and we’ll be happy to provide reassurance.
We’re also planning an in-person Budget event for the morning of Monday 1 December in the Hertfordshire area, in partnership with our accountants. If you’d be interested in attending, please let us know by emailing siobhan@emerylittle.com.
State pensions in 2026-27
Following the publication of the annual earnings increase to July 2025, State pensions are expected to increase by 4.7% in April 2026. On this basis, the full single tier State pension would increase to £12,535 in 2026-27, just shy of the personal allowance of £12,570, and the basic State pension to £9,607.
Winter Fuel Payments
The eligibility criteria for Winter Fuel Payments in England, Wales and Northern Ireland and the Pension Age Winter Heating Payment in Scotland have been widened so that more pensioners will receive the payment from this winter.
However, if the recipient has income exceeding £35,000, HMRC will recover the full payment through the income tax system. For those registered under PAYE, tax codes will be adjusted from April 2026, meaning the winter 2025 payment will be recovered in equal instalments across the 2026-27 tax year.
Paper tax returns deadline
The deadline for individuals to submit self-assessment tax returns and for trustees and personal representatives to submit SA900 Trust & Estate tax returns for 2024-25 as paper returns is 31 October 2025. Online returns must be submitted by 31 January 2026.
Trustees should be aware that if submitting a return electronically, third party software must be used, most of which needs to be purchased. The government website has a list of commercial software providers. We would recommend using an accountant in this scenario.
Claiming pensions tax relief for higher earners
Changes took effect from 1 September 2025 that affect how pensions tax relief can be claimed by higher earners. Telephone claims can no longer be made – all claims must now be lodged electronically or by post, and evidence supporting the claim from the pension provider must also be submitted.
Higher rate income tax relief for those contributing to ‘relief at source’ personal pension schemes (and SIPPs) should continue to be claimed via the individual’s self-assessment tax return. Online claims can be made via the government gateway account.
Dedicated bereavement service helpline
HMRC has launched a dedicated bereavement service to allow bereaved people or their representatives to report a death and settle the deceased’s tax affairs. The helpline can be contacted on 0300 322 9620. This is for those who are unable to use the Tell Us Once service, which lets you report a death to most government organisations in one go.
As we head into autumn, if you have any questions or would like to discuss your financial planning – or if you know someone who might benefit from our approach – please don’t hesitate to get in touch.
