UK Tax Changes 2025: Key Updates Every Business Owner Must Know to Save Money and Stay Compliant4/3/2025 Major UK Tax Changes Coming April 2025 – What Business Owners Need to Know
Stay Compliant & Minimize Your Tax Bill 🚨 Big tax changes are coming from April 2025 that will impact small businesses, self-employed individuals, and company directors. These updates affect income tax, corporation tax, VAT, dividends, capital gains, inheritance tax, and even vehicle tax. 💡 If you own a limited company, operate as a sole trader, or have investment properties, these UK tax changes for 2025 could increase your tax bill if you don’t act now. But don’t worry! Tax Affinity Accountants can help you legally reduce your tax liabilities and stay ahead. 📌 Key UK Tax Changes Effective April 2025: 1️⃣ National Minimum Wage Increase
📌 Learn how Tax Affinity can help with payroll & PAYE 2️⃣ Vehicle Excise Duty (VED) - Road Tax Updates🚗 All vehicles, including electric cars, will now be taxed under VED rates. Previously, EVs were exempt, but from April 2025, they will incur road tax costs. 📌 Find out how Tax Affinity can help with tax-efficient company cars 3️⃣ Stamp Duty Land Tax (SDLT) Thresholds Lowered🏡 The tax-free threshold for SDLT is reducing, meaning property investors and home buyers will pay more tax on purchases. 💡 Property investors should consider incorporating rental properties into a limited company for tax benefits. 📌 Get expert property tax advice from Tax Affinity 4️⃣ Inheritance Tax (IHT) Changes – Business & Property Relief at Risk💰 Changes to Business Property Relief (BPR) could impact succession planning. If you are a business owner, your estate could face higher inheritance tax (IHT) unless you take action now. 📌 Learn how to protect your estate with smart IHT planning 5️⃣ Capital Gains Tax (CGT) Exemption Cut – Investors & Landlords Affected📉 The annual tax-free CGT allowance is being slashed from £6,000 to £3,000. This means landlords, property sellers, and investors will pay more capital gains tax on disposals. 📌 Speak to Tax Affinity about CGT strategies to reduce your tax bill 6️⃣ Corporation Tax – Full Expensing for Business Investment🏢 The "full expensing" tax relief continues, allowing companies to deduct 100% of eligible equipment costs from profits. 📌 Tax Affinity can help you maximize corporation tax relief 7️⃣ Dividend Allowance Cut – Directors & Shareholders Pay More Tax📊 The tax-free dividend allowance is now £500 (down from £1,000). 💡 Limited company directors should review tax-efficient salary and dividend strategies to minimize extra tax. 📌 Get expert tax planning for directors & shareholders 8️⃣ VAT Changes – More Businesses Must Register📈 The VAT registration threshold remains at £90,000, but more businesses may be required to register due to HMRC’s updated reporting rules. 📌 Tax Affinity can assist with VAT registration & filing 9️⃣ New Double Cab Pickup Truck Tax Rules 🚙📢 From April 2025, HMRC is changing the way double cab pickup trucks are taxed!
📌 Get expert vehicle tax advice from Tax Affinity 🚀 How Tax Affinity Can Help You Stay Compliant & Save Money📢 Don’t let these tax changes increase your tax bill! Tax Affinity Accountants specialize in helping UK businesses, landlords, and individuals navigate tax law and legally reduce their tax liabilities. ✅ Free 1-on-1 Tax Consultation – Get expert tax-saving strategies tailored to your situation. ✅ Limited Company Tax Planning – Maximize deductions and minimize Corporation Tax. ✅ Capital Gains & Property Tax Advice – Sell assets tax-efficiently. ✅ PAYE & Payroll Support – Keep up with minimum wage changes. ✅ Self-Assessment & HMRC Filing – Ensure full compliance and avoid penalties. 📌 Book a Free Tax Review Now 📢 Don’t Wait – Take Action Now!🔴 Avoid paying more tax than necessary! Get expert guidance today from Tax Affinity Accountants and make your business tax-efficient before April 2025. 📞 Call us now see the number at the top of this page or fill the contact us page and we will get back to you 🌎 Visit us: www.taxaffinity.com 💬 Share This With Business Owners & Entrepreneurs!💡 Know someone who runs a business? Share this guide and help them save thousands in tax! 🚀 By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends. #UKTaxChanges #TaxUpdates2025 #BusinessTax #SmallBusinessUK #TaxPlanning #HMRC #InheritanceTax #CapitalGainsTax #CorporationTax #SelfAssessment #LimitedCompany #TaxTips #Accounting #FinancialPlanning #TaxRelief #TaxAffinity #DoubleCabPickup #StampDuty #DividendTax #VATThreshold
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The new UK Chancellor (yes another one...can you believe the UK had 4 Chancellors in 4 months in 2022) has given his first budget. And as before we have refined the main points and facts for business owners including SME's and entrepreneurs. So you can easily navigate and plan ahead with clarity.
The main points from the budget are: 1. Energy price guarantee for homes will remain at £2,500 extended for only 3 months until end of June. It was set to rise to £3,000 but that has now been cancelled. And no new support announced for business bills. 2. Corporation Tax for a limited company will rise from 19% to 25% from 6th April 2023. Small company's with profit of less than £50k will still pay the lower 19%. But companies with profits between £50k to £250k have to pay between 19% and 25% but are allowed to claim marginal relief. Company profits over £250k will be taxed at 25%. And companies with group ownership of other companies may end paying close to 26.5% (effectively) because the corporation tax for Group Companies was increased also - sadly all important details missed by the main stream media. 3. Tax-free yearly allowance for pension cash out to rise from £40,000 to £60,000 after being the same for the past 9 years. 4. Fuel duty (tax) frozen so the 5p cut to fuel duty/tax on petrol and diesel which was due to end in April, has been extended for another year. 5. Maximum amount a worker can accumulate in pensions over their lifetime before paying extra tax currently £1.07 Million will be cancelled. Now there is no limit. 6. Tax on tobacco to increase by 2% above inflation for normal and 6% above inflation for hand-rolling tobacco. 7. Those who are already drawing down on their pensions, the total amount they can save tax free under the Money Purchase Annual Allowance is increased from £4,000 to £10,000 from April 2023. 8. 30 hours of free childcare for working parents in England expanded to cover 9 months to three year olds. 9. New £600 "incentive payment" for people becoming childminders, and the rules have been changed in England to let childminders look after more children. 10. Immigration rules to be relaxed for five roles in the construction sector, to ease labour shortages in the Industry. These categories are:
11. Super deduction of 130% will end on 31/03/23 and move back to 100% AIA for plant and machinery purchased and can be used directlty against corporation tax payable. A list of typical purchases is lasting until 31/03/26:
If your worried how these will effect you and need more specific guidance to help your business carry on growing during turbulent times then contact one of our Tax Affinity expert business advisors today (click here). With their countless years of knowledge and expertise they can guide your business to success even in the toughest of economic conditions. By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends. The importance of budgeting for income or corporation tax for self-employed people
A lot of of us dream of running our own business, and with hard work and careful planning, self-employment can be hugely rewarding and fun. But due to the fluctuating incomes many self-employed people face, running your own business requires careful money management. Whilst you may have a strong overall income, the flow of money may not always be regular and it can take weeks and even months between pay cheques. It is therefore very important to manage your money carefully. Running out of cash before you get paid again could mean living on credit and interest payments may prove to be very costly. Income tax is paid by sole traders and partnerships and corporation tax is paid by limited companies. Regardless of whether you are a sole trader, partnership or work via a limited company it is particularly important to budget for the tax due on 31 January each year. Unlike employment income, your tax is not deducted at source and as you receive your income untaxed it is easy to assume that all of this is yours. However, some of this income will be paid in tax and should be budgeted for in order to avoid the shock of a high tax bill. It is worth noting at this point that if income or corporation tax has not been budgeted for and you delay payment, you may have to pay fines for late payment (as highlighted in more detail in the previous blog post). A good accountant can help you with budgeting by calculating how much of your income will be paid to the taxman and can also advise on how to minimise this. You can also use the 'Self-employed ready reckoner' tool on the HMRC website for an estimate of how much money to set aside. And this is usually around a 80:20 split between you and HMRC. Furthermore, you can also set up a 'budget payment plan' which lets you make regular weekly or monthly payments in advance. These methods will save you a lot of stress and will help you better manage your money, especially during the Christmas period. If you need any further help please do not hesitate to contact us and we'll be sure to offer you bespoke advice depending on what best suits you. By Hamza Habib at Tax Affinity Accountants Tax Affinity Accountants are experts in Tax and Accountancy. Based in Worcester Park and Surbiton in Kingston upon Thames they are considered in the industry to be experts accountants for small businesses. Helping and supporting business throughout the UK, they regularly help new and established businesses to succeed. For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends. |
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