Hello and welcome to April — the start of a brand-new financial year! As always, this time of year brings fresh updates from the Government and one of the most notable changes on the horizon is HMRC’s ‘Making Tax Digital’ for Income Tax Self-Assessment which is coming into affect from April 2026.  This is directly affecting small businesses trading through self assessment, and property landlords.

What’s Changing?

If you’re used to submitting a Self-Assessment tax return once a year, things are about to change. HMRC is moving towards quarterly reporting, much like what VAT-registered businesses already do. This means instead of sending in your figures once a year, you’ll now be expected to submit updates every three months, using Accounting software compatible with HMRC, the spreadsheet will become a thing of the past.

Who Does This Affect?

This will roll out in phases:

• From April 2026: If your total self-employed or property turnover is over £50,000, you’ll be required to comply.
• From April 2027: The threshold lowers to £30,000.

This applies to landlords as well as sole traders, so even if you're just renting out property and not running a business, this could still apply to you.

What Should You Do?

If you're likely to be affected, don’t panic. We’ll be in touch with you individually to discuss the best approach and make sure you’re set up well in advance.

It’s worth noting that HMRC has already changed the start date a few times, so we are still in the early days of implementation. Information is a little light at the moment from HMRC side of things, but we’ll keep you updated as soon as we know more.

Here to Help

We know this might feel like a big shift, and it’s perfectly normal to feel unsure about how it will all work. If this news has left you with questions or concerns, please call or message us — we're here to help guide you through it all.

Let’s make this new tax year a smooth one!

Filing your tax return as early as possible comes with several advantages. It removes the stress of last-minute submissions, allowing you to focus entirely on running your business. The self-assessment deadline of 31st January remains unchanged every year, yet HMRC reported that 2.6 million people had not filed their tax returns just two days before the deadline last year.

Missing the deadline results in an automatic £100 fine, with additional penalties for further delays. If your return is more than three months late, daily fines of £10 start accumulating—leading to significant penalties you’ll want to avoid.

You can submit your tax return as soon as April 6th, and filing early comes with a major advantage: you don’t have to pay your tax bill immediately. The payment deadline remains in January, giving you plenty of time to budget for what you owe. Plus, if you’re due a tax refund, filing early ensures you receive it much sooner—unlike those who file in January, when HMRC experiences delays due to high demand.

With a little organisation, you can get your paperwork sorted and your tax return submitted well in advance—leaving you free to enjoy the festive season stress-free. Filing correctly is crucial, as you don’t want to risk overpaying or underpaying your taxes. Seeking professional advice can help ensure accuracy and peace of mind.

Contact us on www.crossaccountingservice.co.uk if you have any concerns regarding your tax return as we are always here to help.

As we step closer to April 2025, change is on the horizon. This is when the new financial year starts and we discuss what could impact our business in the coming months. We’ll explore what is ahead and how to prepare effectively.

National Minimum Wage

The most notable one is the rise in National Living Wage and National Minimum Wage. We are probably familiar with this rising every April.

Take a look at the table below for the hourly rate changes.

The apprenticeship rate applies to apprentices under 19 or 19 and over in the first year of apprenticeship.

Personal Allowance

The freeze continues on personal tax thresholds. Your personal allowance is the amount you can earn until you start to pay income tax. The personal allowance is currently £12,570 and set to be until April 2028 where the government will look to review.

Employer’s NI

Employers NI is also set to rise from 1 April 2025. Currently employers pay NI on employees wages at 13.8% when it hits the threshold of £9,100 however, from April the rate increases to 15% and the threshold falls to £5,000.

 To combat against this, the government have increased the employment allowance. The employment allowance is a credit against the Employer’s NI. Currently it is £5,000 for the year and will increase to £10,500. Once you have used up your Employment Allowance, then you will start to pay Employer’s NI.

Corporation Tax

There are no changes in the rates of Corporation Tax. This means that, from April 2025, the small profits rate will stay at 19% and will be payable by companies with profits of £50,000 or less.

Companies with over £250,000 profit will pay corporation tax at 25%.

Companies with profits between £50,001 and £250,000 will pay tax at the main rate reduced by a marginal relief, providing a gradual increase in the effective Corporation Tax rate.

If you're concerned about budgeting for the latest tax changes, let us know! We are experts in managing budgets and identifying trends to help you make the most of your resources. We can work out whether the Employment Allowance is going to save you money, or cost you money and provide insights and solutions tailored to your needs. Additionally, if you require any extra services, don’t hesitate to reach out—we’re here to accommodate your requests and provide the best possible support. We’re always ready to assist in any way we can!

The latest UK Budget has introduced several significant changes aimed at balancing economic growth with fiscal responsibility. Here's a streamlined summary of the most impactful changes and what they mean for individuals and businesses alike in the government’s own words.

National Minimum Wage

To help tackle the rising cost of living, the national minimum wage will increase to £12.21. This change represents a substantial boost for lower-income earners, designed to provide more financial stability. This increase is likely to benefit millions, particularly in sectors with high numbers of minimum-wage workers, like retail, hospitality, and care.

No Tax Increase for “Working People”

In a bid to provide stability for working individuals, the Budget confirmed that there will be no increases in key personal taxes:

• VAT (Value Added Tax) remains the same.
• Employee National Insurance rates stay fixed.
• Income Tax brackets remain unchanged.

This decision reflects the government’s focus on preserving the disposable income of working households amid challenging economic times. With inflation affecting purchasing power, the decision not to raise these taxes offers some relief to the general workforce.

Employer National Insurance Contributions

Employers will see an increase in National Insurance contributions (NICs), rising to 15% from April 2025. Additionally, the threshold at which employers start paying NI will be lowered from £9,100 to £5,000, a significant change intended to increase revenue.

• Revenue Target: This measure aims to raise £25 billion, which will help fund essential services and reduce the national debt.
• Impact on Businesses: While this will undoubtedly increase costs for employers, the government has introduced measures to mitigate its impact on small businesses, notably by raising the Employment Allowance to £10,500. This allowance increase will help smaller companies offset some of the added employer NI burden, particularly in sectors that are already financially stretched.

Capital Gains Tax (CGT) Rate Increases

The Budget has raised both the lower and higher rates of Capital Gains Tax:

• Lower rate: Increased to 18%
• Higher rate: Increased to 24%

These changes reflect the government’s intent to generate additional revenue from investments and asset sales. For property investors, landlords, and those selling high-value assets, these adjustments could mean a considerable increase in the tax payable on gains, especially with rising property values over recent years.

Reforms for Non-UK Domiciled Individuals

A major shift in the taxation landscape is the abolition of the remittance basis of taxation for non-UK domiciled individuals. Starting from 6 April 2025, a new residence-based regime will take effect, aimed at simplifying tax rules for international residents.

• Key Feature: Under this regime, individuals opting in will not pay UK tax on their foreign income and gains for the first four years of their tax residency.
• Impact: This approach is intended to make the UK a more attractive destination for international talent by removing the complexity of remittance-based taxation, potentially encouraging longer-term stays and investments from foreign residents.

Stamp Duty Changes for Additional Properties

In a bid to address housing affordability and cut down multiple property ownership, the government has raised the higher rates for additional dwellings in Stamp Duty Land Tax. This rate, applicable to second homes, buy-to-let properties, and properties bought by companies, will rise from 3% to 5%, effective immediately.

• Objective: The increase seeks to reduce the number of second homes and investment properties, potentially freeing up more properties for first-time buyers and primary residents.
• Implications: While this may make it costlier for investors and those looking to buy additional properties, it’s a positive move for prospective homeowners struggling with high prices in the housing market.

Welfare Reforms and New Cap

Looking toward the future, the Budget introduced a new welfare spending cap set for 2029-30.  By implementing stricter control measures, the government expects to save £4.3 billion per year. The welfare cap will primarily target reductions in fraud and error, reflecting a commitment to make the welfare system more sustainable without affecting those in genuine need.

Business Rates Relief for Key Sectors

The retail, hospitality, and leisure sectors, which have been particularly affected by recent economic challenges, will benefit from changes to business rates: The small business multiplier will remain frozen and from 2026-27, businesses in these sectors will receive a 40% relief on their rates bills.

This support aims to help these sectors recover and remain viable, especially as they continue to feel the effects of inflation and changing consumer spending habits.

Conclusion

The latest UK Budget introduces targeted measures designed to generate additional revenue, support lower-income workers, and provide relief to small businesses. By balancing increased taxes on certain types of income and assets while protecting the working population from direct tax hikes, the government aims to address pressing economic needs without overburdening households.

As the spring of 2024 unfolds, the Government have unveiled their budget, setting the stage for economic policies, social initiatives, and infrastructure development for the upcoming fiscal year. This pivotal moment not only reflects current priorities but also shapes the nation in the months and years to come. In this blog, we delve into some of the top topics emerging from the spring 2024 budget and their potential implications.

National Insurance

The main topic for the budget was the cut in national insurance again. The chancellor reduced the amount of national insurance employees would pay by 2%. The rate going from 10% to 8% in April 2024. It is estimated that the cut would be worth about £450 a year for someone on a £35,000 full-time salary.

It is estimated that around 29 million workers are set to benefit from the change. The rate of 'class 4' national insurance contributions, which is the main rate paid on self-employed profits of between £12,570 and £50,270, will be cut from 9% to 6% from 6 April. This rate had been due to fall to 8% from 6 April, but the chancellor has taken it one step further today. The self-employed will benefit too as the rate is slashed from 9% to 6%.

Housing

The chancellor confirms plans to scrap the furnished holiday lets regime. The initiative gives tax reliefs on properties being rented out to holidaymakers and make renting out to holidaymakers more profitable than to long-term tenants. The move is expected to raise £300m a year for the Treasury, however a blow to furnished holiday lets owners.

The chancellor also announced the government will reduce the higher rate of property capital gains tax. This is a tax paid on the amount of gain when selling a property. Currently the rate is 28% for higher rate earners, but this is being reduced to 24%

Business and Investment

The VAT registration threshold will be increased from £85,000 to £90,000 from the start of April. This change is estimated to help tens of thousands of businesses.

Benefits and Income Support

The Household Support Fund, which helps people struggling with cost-of-living pressures and was due to close in four weeks' time, will continue for another six months.

Full child benefits to be paid to households where highest-earning parent earns up to £60,000 - the current limit is £50,000. The top of a taper to withdraw the benefit will be raised to £80,000 from £60,000 at the moment.

The chancellor also announces a consultation on child benefit rules, to apply it to collective household incomes rather than for individuals from April 2026.

If there is something you want to know more about, you can call us on 02920 653995 or

01656 530063 to discuss.