From April 2025, several tax changes have come into force which may impact you.
From 1st April:
1. Minimum wage increase:
-
a. £12.21 – age 21 and over
-
b. £10.00 – age 18 to 20
-
c. £7.55 – age under 18, apprentices under 19, and apprentices over 19 in 1st year of apprenticeship
2. Stamp Duty Land Tax – returned to non-discounted levels
👉 More info
3. Furnished Holiday Lets (FHL) – will be treated the same as long-term lets from 1 April for companies and 6 April for individuals, trusts and partnerships
4. HMRC Late Payment Penalties – on unpaid tax liabilities for VAT and taxpayers trialling the Making Tax Digital for Income Tax. Shown as a percentage of the unpaid tax:
-
a. 10% penalty – 31 days or more late (previously 4%)
-
b. 3% penalty – 15–30 days late (previously 2%)
5. Road tax – will be rising for different vehicle sizes and extended to electric vehicles
6. Company car tax – increasing with the rate dependent on the type of vehicle and CO₂ emissions
From 6th April:
- Employers National Insurance – annual threshold reduced to £5,000, rate increased to 15%
- Employment Allowance – increasing to £10,500; £100,000 previous year NI cap removed
- HMRC Interest on Late Payments – increases by 1.5% to 8.5%, changing from the Bank of England base rate plus 2.5% to the base rate plus 4% for most taxes.
The interest rate HMRC pay in relation to tax repayments remains at 3.5% (base rate minus 1%, with a lower limit of 0.5%) - Capital Gains Tax Reliefs – Business Asset Disposal Relief (BADR) and Investors Relief rise from 10% to 14%
- Small Employers Relief – rising to 8.5% (previously 3%), meaning that eligible employers can now claim 100% of statutory payments plus an additional 8.5% compensation
- Non-domiciles – long-term UK residents face tax on their worldwide income and gains
If you have any questions, please contact us!