Medics Money podcast Budget 2025 - The impact on doctors finances
Nov 26, 2025
In this discussion, guest Andy Powell, a specialist medical accountant, breaks down the recent budget changes that impact healthcare professionals. He discusses the implications of frozen income tax thresholds and new rates for property, savings, and dividends. The conversation highlights the lack of changes to NHS pensions and warns of future caps on salary sacrifice. Listeners also learn about planned NHS spending on digital investments and new health centres, alongside changes in vehicle duties and council tax for luxury homes.
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Frozen Tax Thresholds Amplify Fiscal Drag
- Freezing income tax thresholds to 2031 amplifies fiscal drag and pushes more doctors into higher tax bands over time.
- Andy Powell warns the £100,000 personal allowance cliff, unchanged since 2010, will bite harder by 2031.
Phased Tax Increases On Passive Income
- The budget raises tax rates on property, savings and dividends but staggers their start dates across years.
- Andy Powell highlights differing timings: dividends from April 2026, savings and property from April 2027.
Reassess Dividend Timing And Drawings
- Review company dividend strategies before April 2026 to reduce higher dividend tax exposure.
- Andy Powell implies shareholders using limited companies will face noticeably higher rates.