As 2024 comes to a close it’s time to look ahead to the new year. Here are some key dates for your new diary. And don’t forget we’re here at WNJ to help you with any advice or support you may need in the next 12 months. Call us on 01772 430000.

January
January 1
Energy Price Cap
Ofgem is increasing the energy price cap from £1,717 to £1,738.
This is less severe than some of the increases seen in the previous year, but you may still find that your business is impacted by the additional costs.

Private school fees
Fees fees for terms starting on or after January 1 2025 will generally now be subject to UK standard-rated VAT, instead of being VAT exempt. This will also cover many deposits and prepayments made in 2024 or before, for 2025 and onwards school terms.

January 31
Self Assessment Tax Returns
This is the final deadline for electronic submission for individual, partnership and trust self assessment tax returns for the 2023/24 tax year. Anyone who has not yet paid the balance of their self assessment tax bill for 2023/24 will need to pay it by this date. The first payment on account for the 2024/25 tax year is also due.

March
March 2
Rail fare increases
Regulated train fares are set to increase by 4.6 per cent. The increase will apply to season tickets covering most commuter routes, some off-peak return tickets on long distance journeys and flexible tickets for travel in and around some major cities.
Train companies can set unregulated fares but they usually increase these by a similar amount. It is the lowest absolute increase in three years but will still add to travelling costs

April
April 1
National Minimum Wage
The National Living Wage, which applies to anyone aged 21 and over, increases to £12.21. This is a 6.7 per cent rise.
The rate paid to 18-20-year-olds will rise to £10, a 16.3 per cent increase. And 16-17-year-olds and apprentices will receive £7.55, an 18 per cent increase.

Stamp duty land tax
The government has confirmed that the temporary increase to stamp duty land tax (SDLT) free thresholds will end. The threshold for first time buyers reduces to £300,000. For everyone else the nil rate SDLT threshold reduces to £125,000.

Business rates
The standard multiplier for business rates increases to 55.5p. However, the small business multiplier – which applies to properties with a rateable value of less than £51,000 will stay frozen at 49.9p

Furnished Holiday Lettings (FHL) regime
The abolition of the FHL regime removes a longstanding tax advantage that treated qualifying holiday lets as trading rather than investment properties.
Holiday let owners will see their properties aligned with standard residential lettings for tax purposes. Profits will be treated as property income rather than trading income, restricting loss relief and changing the calculation of capital gains tax.
Those currently claiming capital allowances will need to review their position, though transitional provisions protect existing allowances. The changes particularly affect owners who planned to claim Business Asset Disposal Relief on eventual sale, as this 10 per cent rate will no longer be available.

April 6 – New tax year begins
Employers National Insurance
The Employers National Insurance (NI) rate increases to 15 per cent from 13.8 per cent for the new tax year. The Secondary Threshold – the threshold at which employer NI contributions begin to be paid – also reduces to £5,000 a year.
If you run your own payroll check that its software has been updated to take into account these changes.
The maximum Employment Allowance will go up from £5,000 to £10,500. In addition, the restriction that prevents employers that have paid more than £100,000 in employers NICs in the previous tax year from claiming has been removed.
It means all eligible businesses will now be able to claim the reduction, regardless of how much employer’s NICs they paid in 2024/25.

Dividend allowance
There is no change to the dividend allowance – it stays at £500 for the tax year.

Capital gains tax
The rate on gains subject to business asset disposal relief and investors relief will go up to 14 per cent from 10 per cent. The rate will increase to 18 per cent from April 6 2026. People considering selling their business or retiring will need to factor this into their plans.
The capital gains tax rate for carried interest for both basic and higher payers is increased to 32 per cent. The intention is for this to be brought within the Income Tax Framework from the 2026/27 tax year.

Residence based regime for foreign income and gains
The concept of domicile in tax regulations ends and a new residence-based regime begins. A Temporary Repatriation Facility (TRF) will be available for three years to taxpayers who previously used the remittance basis.
Individuals can elect to pay tax at the TRF rate of 12 per cent in the 2025/26 tax year on offshore funds they designate. The designated funds will not then be taxed on remittance to the UK.

Company car tax
The appropriate percentage for all company car users – assuming no change in vehicle – increases by one per cent.

Statutory family-related pay increase
Statutory maternity, paternity, adoption, shared parental leave and parental bereavement leave pay rates will increase from £184.03 to £187.18 a week for periods of leave from April 6.

Statutory Sick Pay (SSP)
Statutory Sick Pay increases from £116.75 per week to £118.75 per week for periods of sick leave from April 2025. Where a worker is on sick leave for less than a week, or a fraction of a week, the weekly statutory SSP rate is paid on a pro-rata basis.
Workers must earn at least the Lower Earnings Limit – which is £123 per week until April 2025 – to be entitled to SSP.
Additionally, SSP is only payable after the three-day waiting period that the worker is off sick; unless the worker previously received SSP within the last eight weeks.

Payroll
Update employee payroll records for the new tax year

April 7
State pension increase
The State Pension is set to rise 4.1 per cent in accordance with the triple-lock approach. This will take a full state pension to £230.25 per week.

April 19
Payroll
Submit your final Full Payment Summary and Employer payment summary for the year ended 5 April 2023 and pay any tax/NIC due for the year.

May
May 31
Each employee who was employed as at April 5 must be issued with a P60 form, on paper or electronically.

July
July 6
This is the deadline for submitting the 2024/25 tax year P11D forms to HMRC. It is also the deadline for submitting the return of Employment Related Securities.

July 19
Payment of Class 1A NICs by post: July 22, 2025 if paid electronically.

July 31
Payment on account deadline
This is the payment deadline for self-employed people who need to make a second payment on account towards their self assessment tax bill for the 2025/26 tax year.

October
October 5
Self assessment registration
This is the deadline for taxpayers to tell HMRC if they need to complete a self assessment tax return for the 2024/25 tax year and have not sent one before.
If you’re in a partnership and a new partner has joined you in the 2024/25 tax year, you should notify HMRC by this date as well.

October 31
Self assessment tax return
Anyone who wants to submit a paper self assessment tax return needs to submit it by midnight October 31.

December
December 30
Those self assessment taxpayers who wish HMRC to collect any tax due via their PAYE tax code should file their 2024/25 self assessment return by this date.

Other dates to be aware of
Corporation tax and company accounts
The deadlines for filing company accounts and corporation tax returns, as well as making corporation tax payments, are linked to a company’s accounting period end.
Companies with standard accounting periods need to pay corporation tax nine months and one day after their accounting period ends. The corporation tax return is due 12 months after the accounting period ends.
A copy of the statutory accounts also needs to be filed at Companies House. Accounts must be filed nine months after the company’s financial year ends. In addition, the annual confirmation statement must be completed every 12 months.

VAT returns and payments
VAT payment deadlines are usually one month and seven days following the end of the VAT accounting period, with the VAT return being due on the same date.

PAYE
For employers, PAYE deductions must be paid to HMRC by the 19th of each month or 22nd if the payment is made electronically.

Capital gains tax
For those who sell a second property in the UK, any Capital Gains Tax due must be paid and the gain reported within 60 days of completion.

The rise in employers’ National Insurance Contributions (NICs) unveiled in the Budget is undoubtedly a blow to some businesses and, indirectly, to employees.

Combined with the increases in the National Minimum Wage and potential costs associated with recent reforms in employment law, this raft of new measures will stretch employer wage budgets.

And that will potentially lead to slower growth in some employee wages or higher costs for consumers. It may also have an effect on business growth plans.

Businesses need to be aware of any impact these changes will have. Now is the time to take another look at your forecasts and assess what the new rates will mean to your projected figures – both in the short and longer term.

It is also good time to revisit business plans and see what effect the increased overheads may have. Open discussions are needed to find the best ways of managing any increased costs. As always, cashflow will be a vital part of all those discussions.

The chancellor said the rise in National Insurance hike was “difficult”, but the right choice in order to fund public services.

From April 6, 2025 the employers’ NICs rate will rise from 13.8 per cent to 15 per cent.

Added to that is a significant reduction in the threshold at which businesses start paying NI on a workers’ earnings – from £9,100 to £5,000.

The chancellor also announced a widening of availability and an increase in the amount of the ‘employment allowance’, which eligible employers can offset against their employers’ Class 1 NICs liability, from £5,000 to £10,500.

The employment allowance has only been available to businesses who have incurred an employers’ Class 1 NICs liability of less than £100,000 in the previous tax year but that restriction will be removed for 2025/26.

The announcement has not gone down well. Some of Britain’s biggest retailers have warned the chancellor her Budget will stoke inflation in the economy and spark job losses saying that tax hikes add nearly £2.5bn to the industry’s annual tax bill.

Sky News obtained the draft of a letter coordinated by the British Retail Consortium (BRC) to Rachel Reeves in which it produces a stark analysis of the impact of her statement.

It said: “The sheer scale of new costs in the Autumn Budget and the speed with which they occur, together with costs from a raft of other regulation, create a cumulative burden that will make job losses inevitable, and higher prices a certainty.”

The BRC’s members consist of the major supermarkets, including Asda and Tesco, as well as hundreds of other well-known chains, including B&Q’s parent, Kingfisher.

The reaction from manufacturers has also been far from positive. Neil Evans, managing director of Burnley manufacturer VEKA, issued a statement which said: “The rise in minimum wage, employer National Insurance rate and threshold reduction are not insignificant for businesses like ours – a large family-owned business, and key employers in the region.  The NI decision alone takes around £500,000 from our bottom line.”

He added: “It raises questions as to how this will be managed and what impact it will have on the wider supply chain and pricing. Inevitably and sensibly, increases are passed on through price rises for goods and services, ultimately affecting the consumer market and the money in people’s pockets.” 

Analysis by UKHospitality has revealed that the employment tax measures will increase the cost of employing a full-time staff member by at least £2,500.

However, Tina McKenzie, policy chair at the Federation of Small Businesses (FSB) pointed out some positives. She said: “Increasing the employment allowance for small businesses by a record amount is a very welcome move and we’re pleased the chancellor has heard us loud and clear.

“More than doubling it, from £5,000 to £10,500, will shield the smallest employers from the jobs tax, therefore is a pro-jobs prioritisation in a tough Budget.

“The decision to protect small businesses from an inflationary hike in business rates – by freezing the small business multiplier – will help small firms with premises across all sectors.

“Meanwhile, extending business rates relief, albeit at a lower level, for small firms in retail, hospitality and leisure will mitigate a potential cliff-edge tax hike for those in some of the toughest sectors.

“The true test of the Budget will be whether small businesses can grow and end the economic stagnation the UK has been stuck in.”

• To discuss any issues raised in this article or any Budget questions please contact me on 01772 430000

As predicted Rachel Reeves hiked Capital Gains Tax (CGT) – however the changes she announced were less drastic than many had feared.

CGT is tax on any profits or gains you make when you dispose of an asset. Assets not only apply to the sale or exit of business but can also apply to the sale of items such as offices and trademarks. Even the goodwill built up by your company could ultimately be taxable.

The chancellor announced that the lower capital gains tax rate will be increased to 18 per cent from 10 per cent, while the higher rate will climb to 24 per cent from 20 per cent. The changes are expected to bring in £2.5billion for the Treasury.

However, she maintained the £1m lifetime limit on capital gains from the sale of all or part of a company under business asset disposal relief (BADR).

BADR will remain at 10 per cent this year, before rising to 14 per cent in April 2025, and to 18 per cent from 2026/27

The chancellor stressed that this still represented a “significant gap compared to the higher rate of capital gains tax.”

There were pre-Budget fears that hiking the rate would deter investment, not only in large businesses but in SMEs. Tech entrepreneurs were also worried about the future of BADR.

The Federation of Small Businesses (FSB) was among those that campaigned hard to retain entrepreneurs’ relief, which was under significant threat.

Many commentators called for it to be scrapped, which would have resulted in entrepreneurs paying the full rate of CGT.

In a post-Budget statement, the FSB said: Although the rate will gradually rise, it’s welcome that FSB’s campaigning has led to a discounted rate being kept, with a clear differential.

“This is really important for small business owners who have been planning to sell their businesses for their retirement in place of a pension.”

• To discuss any issues raised by this article or by any of the Budget announcements, please contact me on 01772 430000

There are plenty of myths around self-assessment and who needs to file a tax return before the January 31, 2025 deadline.

Here’s some information, courtesy of HMRC, released to help debunk some of the most common ones.

Myth 1: ‘HMRC hasn’t been in touch, so I don’t need to file a tax return.”’

Reality: It is the individual’s responsibility to determine if they need to complete a tax return for the 2023 to 2024 tax year. There are many reasons why someone might need to register for self assessment and file a return, including if they:

• are newly self-employed and have earned gross income over £1,000
• earned below £1,000 and wish to pay Class 2 National Insurance Contributions voluntarily to protect their entitlement to State Pension and certain benefits
• are a new partner in a business partnership
• have received any untaxed income over £2,500
• receive Child Benefit payments and need to pay the High Income Child Benefit Charge because they or their partner earned more than £50,000

Anyone who is unsure if they need to file a return can use the free online tool on GOV.UK to check.
Once registered, they will receive their Unique Taxpayer Reference, which they will need when completing their return and paying any tax that may be due. People will have to reactivate their account if they have registered for self assessment previously but did not send a tax return last year.

Myth 2: ‘I have to pay the tax at the same time as filing my return.’

Reality: False. Even if someone files their return today, the deadline for customers to pay any tax owed for the 2023 to 2024 tax year is January 31, 2025. People may also be able to set up a Budget Payment Plan to help spread the cost of their next self assessment tax bill, by making weekly or monthly direct debit payments towards it in advance.

Myth 3: ‘I don’t owe any tax, so I don’t need to file a return.’

Reality: Even if a customer does not owe tax, they may still need to file a return to claim a tax refund, claim tax relief on business expenses, charitable donations, pension contributions, or to pay voluntary Class 2 National Insurance Contributions to protect their entitlement to certain benefits and the state pension.

Myth 4: ‘HMRC will take me out of self assessment if I no longer need to file a return.’

Reality: It is important that people tell HMRC if they have either stopped being self-employed or they don’t need to fill in a return, particularly if they have received a notice to file. If not, HMRC will keep writing to them to remind them to file their return and may charge a penalty.

People may not need to complete a tax return if they have stopped renting out property, no longer need to pay the High Income Child Benefit Charge, or their income has dropped below the £150,000 threshold and they have no other reason to complete a tax return.

If you think you no longer need to complete a tax return for the 2023 to 2024 tax year, you should tell HMRC online as soon as your circumstances change. Watch HMRC’s YouTube videos on stopping self assessment as a guide to help through the process.

Myth 5: ‘HMRC has launched a crackdown on people selling their possessions online and now I will have to file a return and pay tax on the items I sold after clearing out the attic.’

Reality: Despite speculation online earlier this year, tax rules have not changed in this area. If someone has sold old clothes, books, CDs and other personal items through online marketplaces, they do not need to file a self assessment and pay Income Tax on the sales. HMRC’s guidance on selling online and paying taxes can be found on GOV.UK.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We want to make sure you are clear about your tax responsibilities. These myth busters and our range of resources on GOV.UK can help if you are unsure if self assessment applies to you or think you no longer need to file a tax return.

HMRC urges people to file their return early to provide peace of mind and to also allow time to consider opportunities to spread the cost of their tax bill, claim refunds earlier and avoid costly errors caused by rushing.

People need to keep records to fill in their tax return correctly and they may be asked for documents if HMRC checks their return.

Penalties may be issued if records are not accurate, complete and readable. Self-employed workers must also keep records for their business income, outgoings and make sure they are registered with HMRC as self-employed. Again, more information can be found on GOV.UK.

Anyone who needs to complete a self-assessment tax return for the first time to cover the 2023 to 2024 tax year, should tell HM Revenue and Customs (HMRC) by October 5.

• Please contact me on 01772 430000 to discuss any issues raised by this article or any issues relating to tax matters

HM Revenue and Customs (HMRC) has launched a new digital tool to help businesses estimate what registering for VAT may mean for them.

The VAT Registration Estimator has been developed after feedback from small businesses suggested an online tool would be helpful to show when their turnover could require them to register and its effect on profits.

A business must register for VAT if:

• Its total VAT taxable turnover for the previous 12 months is more than £90,000 – known as the ‘VAT threshold’ – until March 31, 2024 this was £85,000
• It expects turnover to go over the £90,000 VAT threshold in the next 30 days
• It is an overseas business not based in the UK and supply goods or services to the UK (or expects to in the next 30 days) – regardless of VAT taxable turnover.

A VAT-registered business must charge VAT on eligible sales and can usually reclaim it on eligible purchases. There are around 300,000 new VAT registrations each year.

HMRC says its estimator can help any business to see what registering for VAT could mean, as well as linking to further information about the registration process. It is also a useful tool for businesses operating below the threshold and considering voluntary registration.

Jonathan Athow, HMRC director general for customer strategy and tax design, said: “We know that the majority of our customers want to get their tax right. We have listened to what businesses have said and the new tool is designed to help them understand VAT registration, including when they might be required to register.

“The VAT Registration Estimator has been developed in partnership with small businesses and trade representatives who tested the online tool and gave feedback before its launch.

“We hope it will support businesses’ understanding of VAT registration, especially when combined with our guidance and other services.”

Kevin Sefton, a member of the Administrative Burdens Advisory Board (ABAB), added: “Businesses need to know before they hit key tax thresholds. Tools and guidance can help them prepare.

“I’m pleased to see this new VAT registration tool from HMRC that helps a business understand the different types of supplies it makes, and what this means for VAT registration.”

HMRC says the estimator is a guidance tool and it allows you to experiment with different inputs and outputs. It cannot provide bespoke business advice.

The team here at WNJ is on hand to advise on all tax matters, including VAT. To discuss any issues raised in this article or any tax issues please contact me on 01772 430000.