Essential tax rates and thresholds for 2024/2025 Please find below a guide to the main tax rates and allowances updated in the Spring Budget, showing the main changes that will come in from 6 April 2024.  Tax rates for dividend income Dividends within 2024/25 2023/24 Basic rate band 8.75% 8.75% Dividend allowance £500 £1,000 Higher rate…

Changes to tax benefits for furnished holiday lettings The 2024 budget included the announcement of tax benefit changes for those with furnished holiday lettings (FHL) which will mean that individuals operating FHL businesses will lose a number of tax benefits. Currently, interest incurred on loans for the purpose of a furnished holiday letting business are…

Government AI tool is focused on dormant companies The government’s artificial intelligence (AI) fraud detection tool has been upgraded to include new data on thousands of dormant companies. In a new bid to clamp down on fraud, the government also plans to use AI to identify entities registering and bankrupting successive companies to avoid paying…

Director’s salary and dividends for 2024/25 As business owners of a limited company, typically, the best way to pay yourself via your limited company is to take a low director’s salary and then top up your earnings with regular dividend payments. As tax thresholds and allowances often change at the start of a new tax…

Crypto Investors – tax crackdown announced in 2024 Spring budget HMRC has announced it is consulting on the implementation of ‘global transparency rules’ which will mean crypto platforms will have to share client data with HMRC. The new rules are designed to ensure that in future, crypto investors will find it much harder to avoid…

HMRC unveils plans to replace Government Gateway accounts with One Login The government has announced that it is investing in a single login system for taxpayers and agents using online services such as HMRC with the launch of GOV.UK One Login. This new login service will have two factor authentication to prevent fraud and will…

R&D Tax relief changes in April 2024 Research and development (R&D) tax relief has proven to be a powerful catalyst for encouraging investment in innovation for businesses across the UK, with recent figures available via HMRC revealing that the UK claimed over £7.6bn in total relief for the 2021-2022 tax year – which is a…

Changes to UK company law – 4 March 2024 Companies House will be introducing tougher checks on company names and data matching to remove inaccurate information and crack down on abuse of the register. The new rules have been introduced as part of the Economic Crime and Corporate Transparency Act which comes into effect from…

National Insurance credit scheme to tackle child benefit gaps The government will legislate to allow parents who have not claimed child benefit, including those affected by High Income Child Benefit Charge (HICBC), to apply for top-up National Insurance credits. The credits will be available for parents and carers, including those that fall within HICBC. The…

Payrolling of employment benefits from 2026 will change P11D requirements The reporting and payment of income tax and Class 1A National Insurance Contributions (NICs) on benefits in kind (BIK) will need to be made through payroll software from April 2026. The reporting change to employment benefits is part of HMRC’s plans for a move to…