Tax Updates
Concise summaries of the UK tax changes that matter for owner-managed businesses — VAT, payroll, corporation tax, dividends, R&D, Making Tax Digital and more. Sourced from GOV.UK and HMRC.
From 1 April 2024 the VAT registration threshold rose from £85,000 to £90,000, and the deregistration threshold from £83,000 to £88,000. The standard rate stays at 20%. Useful checkpoint for businesses trading near the threshold.
GOV.UK — VAT thresholdsClass 1 secondary (employer) NIC rises from 13.8% to 15%. The secondary threshold drops to £5,000 (from £9,100). Employment Allowance increases to £10,500 with the £100k cap removed — modelling employer cost is essential before pay reviews.
GOV.UK — NIC ratesCorporation tax remains at 25% on profits over £250,000 and 19% on profits up to £50,000, with marginal relief between the two thresholds. Associated company rules can compress these limits — worth reviewing for group structures.
GOV.UK — Corporation Tax ratesThe tax-free dividend allowance fell from £1,000 to £500 for 2024/25. Combined with the £12,570 personal allowance freeze, this changes the optimal salary/dividend mix for many directors.
GOV.UK — Tax on dividendsThe CGT annual exempt amount is £3,000 for individuals (2024/25 onwards). Main rates rose to 18% and 24% from 30 October 2024. Plan disposals — and use of spouse allowances — accordingly.
GOV.UK — Capital Gains TaxSelf-employed individuals and landlords with income over £50,000 must use MTD-compatible software and submit quarterly updates from 6 April 2026. The £30,000 threshold follows in April 2027, and £20,000 in April 2028.
GOV.UK — MTD for Income TaxFor accounting periods beginning on or after 1 April 2024, the SME and RDEC schemes merged into a single above-the-line credit, with an enhanced regime for R&D-intensive loss-making SMEs. Claim mechanics and rates have changed materially.
GOV.UK — R&D reliefThe National Living Wage (21+) rises to £12.21 per hour from 1 April 2025; 18–20 rate to £10.00; 16–17 and apprentice rate to £7.55. A meaningful cost increase for hospitality, retail and care employers.
GOV.UK — NMW ratesSummaries reflect publicly available information from GOV.UK and HMRC at the time of writing and are for general guidance only. Tax rules change frequently — please speak with us before acting on any of the above.
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