As we embark on the 2024/25 tax year, just now is as good a time as any to have a ‘spring clean’ of your business accounts, or your personal tax situation. Although January 2025, being the deadline for submitting your self-assessment tax return and paying any tax due, seems a long way off, we always recommend bringing your accounts up to date and preparing a draft tax return as soon as possible in the new tax year. Also to help you with your spring clean of your business’s finances, whether you are self-employed, or run a small limited company, here are some of the main changes which apply from 6th April:
- National insurance has been cut from 8% to 6% for the employed, and from 9% to 6% for the self-employed.
- The self-employed will no longer be required to pay Class 2 National Insurance
- The dividend tax allowance has been cut from £1,000 to £500.
- The VAT registration threshold has increased from £85,000 to £90,000.
- The National Minimum Wages rises to £11.44 for those aged 21 and over.