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!

As the clock ticks towards 01 April 2024, businesses across the nation are bracing themselves for the significant minimum wage increase set to come into effect. With no accompanying support from governments in these challenging times, the burden falls on the shoulders of businesses to adapt and plan effectively.

The Rise of Minimum Wage

As with every year, April 1st marks a pivotal moment as the minimum wage sees a substantial increase. Workers aged 21 and over will be entitled to the National Living Wage where currently it was workers aged 23 and over. While the intention behind such adjustments is to uplift low-wage workers and tackle income inequality, the reality for businesses is starkly different. For many, this hike presents a formidable challenge, with limited government assistance.

A couple of weeks ago we highlighted main aspects of the previous chancellors mini-budget. A lot has happened in the house of parliament recently and the new chancellor, Jeremy Hunt reverses most of the mini-budget tax cuts.

Below you can find the updated version from Jeremy Hunts statement.

National Insurance

One of the few things that is staying, is the reversal of the National Insurance social care levy. From 6^th November 2022, the extra 1.25% will no longer be added to National Insurance contributions. This means a saving of £330 per year for nearly 28 million people.

Originally the extra 1.25% was introduced to fund the NHS, however, this will now be funded through general taxation.

Income Tax

The biggest reversal is in the rates of income tax. The ex-chancellor said that income tax will be down to 19% from April 2023, however, this will now not go ahead. It will remain at 20% for now.

The abolition of the 45% higher rate income tax has also been reversed. The 45% higher rate income tax band now means that the higher rate earners will pay income tax on earnings over £150,000

Corporation Tax

The reversal on corporation tax for companies means that the increase from 19% to 25% will go ahead after all. This will come into action from April 2023. Only businesses with profits of £250,000 or greater will be taxed at the full 25% rate - about 10% of companies in the UK.

Any companies with profits of £50,000 or lower, will pay at the 19% rate

Benefits

Rules around the benefit system will remain and unchanged. Benefits can be reduced if people don’t actively search for job commitments. Around 120,000 more people on universal credit to be encouraged to actively seek more work, the over 50’s to be given extra time to work with coaches to help them in the return to work.

What else has been cancelled?

Other measures that have been cancelled include:

·         VAT-free shopping for overseas visitors,

• A freeze on alcohol duty. Planned increases in the duty rates for beer, cider, wine and spirits will now go ahead
• Cuts to the tax paid on shareholders' dividends - the increase introduced in April will now stay in place

Energy

A typical household using both gas and electricity would pay no more than £2,500 annually for two years the government said. However, the energy price guarantee now only covers this winter. It will be in place until April next year. A review will look at what measures should be put in place after this date.

Stamp Duty

Stamp duty will remain in place. In England, no stamp duty is paid on first £250,000 and for first time buyers, this is increased to £425,000. To check out Wales’ stamp duty rates, please click here

These rules seem like they will stay in place now but, as always, we will keep you up to date with the latest

The chancellor Kwasi Kwarteng has claimed that he has made the biggest tax cuts in a generation. So, what is in his mini-budget?

National Insurance

With the cost of living on the rise it is paramount that the Government step in to help. The biggest announcement from this mini budget is the reversal of National Insurance levy that was introduced in April 2022 by ex-chancellor Rishi Sunak. The extra 1.25% increase was going to be used to help fund health and social care. With the latest turnaround, the funding for health and social care will now come from general taxation. 

The reversal means an extra £330 per year for nearly 28 million people and will start from 6^th November 2022. National Insurance is a tax paid by employees, employers and the self-employed. Employees pay National Insurance on their wages as well as income tax, employers pay extra NI contributions for staff, and the self-employed pay National Insurance on their profits.

Income Tax

There are also cuts in basic rate of income tax. Currently at 20% for everyone that earns above the personal allowance, from April 2023 this will be down to 19% Government estimates 31 million people will be getting an extra £170 a year in their pay packets.

45% higher rate of income tax abolished for England, Wales, and Northern Ireland taxpayers and a one single higher rate of income tax of 40% from April 2023.

Corporation Tax

Companies will also benefit as the rise in corporation tax has been cancelled. Corporation tax was due to be increased from 19% to 25% in April 2023, however, now this will not go ahead.

Benefits

Rules around the benefit system have also been changed. Benefits can be reduced if people don’t actively search for job commitments. Around 120,000 more people on universal credit to be encouraged to actively seek more work, the over 50’s to be given extra time to work with coaches to help them in the return to work.

Shopping

Overseas visitors will also benefit as VAT-free shopping to be introduced. This will encourage visitors to spend more while in the UK. Planned increases in the duties on beer, cider, wine, and for spirits have also been cancelled.

Stamp Duty

Stamp duty is paid when people buy a property. No stamp duty is paid currently on first £250,000 and for first time buyers, this is increased to £425,000. This is currently for England, we will have to wait and see what the Welsh Government do for us.

Energy

Energy bills was the one that worried most homeowners. There will be a freeze on energy bills which the government claims will reduce inflation by 5%

Total cost for the energy package to be expected around £60bn for the 6 months from October.

Click here to find out all the other information covered in the mini-budget.