"While we recognise the government’s challenge in addressing the fiscal deficit and public spending pressures, we have serious concerns about the cumulative impact of today's measures on SMEs, small business owners, directors, and the self-employed – many of whom form the backbone of our membership. 

"The Government’s commitment to stability is welcome. However, decisions not to extend the VAT registration threshold, maintain enhanced investment reliefs, and leave long-standing issues such as IR35 unresolved, leaves small businesses continuing to shoulder disproportionate administrative and financial burdens. Further fiscal drag through continued freezes in income tax, NIC thresholds, and the increase in tax on dividends will erode the real incomes of sole traders and small company directors at a time of rising costs and constrained access to finance. 

"In addition, the expansion of LLP rules, particularly the tightening of partnership taxation and reclassification tests, creates additional uncertainty for professional practices and smaller advisory firms. Many IFA members operating in or advising LLP structures now face greater compliance demands without clear evidence that such changes will support growth or improve fairness in the tax system. 

"This Budget gives broad headline measures without addressing the practical challenges faced by small firms. In doing so, it widens the gap between large corporates and the SME community, where the majority of IFA members’ clients sit.  

"We urge the government to prioritise clarity, stability, and genuine simplification. Sustainable economic recovery depends on policies that empower SMEs, freelancers, and the advisers who support them, rather than leaving them with increasing obligations, admin, and diminishing support. At the IFA, we will continue to help our members navigate what comes next as a result of this Budget." 

ENDS