Category: News
• National minimum wage – will rise in April 2025 aiming to move towards a single national rate
National Living Wage (21 +) £12.21
18-20 Year Old £10.00
16-17 Year Old £7.55
Apprentice Rate £7.55
• Employers’ NIC – to increases by 1.2% to 15% from April 2025 and threshold decreased at which NIC becomes payable will fall steeply to £5,000 from £9,100.
• Employment Allowance – to increase to from £5,000 to £10,000
• Tax and NI Thresholds – No change as depicted by the previous government but will increase in 2028/29 which will prevent more people becoming susceptible to higher tax bands.
• State Pension 
– to rise 4.1% increase of £470.00 per year
• Pension Credit – also to rise by 4.1%
• VAT – No change to VAT thresholds on rates
• Dividends 
– No change to Dividend allowances or rates
• Corporation Tax – to be kept at 25% along with the small profits 9£50k)rate of 19% and margin relief on profit between £50k and £250k
• Capital Gains Tax 
– from 30 October 2024 lower rate increase from 10% to 18% and higher rate from 20% to 24%. CGT on residential property remains unchanged.
• Business Asset Disposal Relief (BADR) – £1m lifetime allowance to be retained, but with an increasing rate from 10% to 14% in April 2025 then to 18% for 2026 & 2027
• Business rates – existing 40% relief on business rates for the retail, hospitality and leisure (RHL) industries will continue in 2025/26 up to a cap of £110,000 per business.
• Small Business Tax Multiplier – frozen at 49.9p and Standard Rate Multiplier at 55.5p
• Inheritance Tax – threshold frozen until 2030 but Inherited pension to be included in IHT from April 2027. This change would add pension wealth to the death estate and therefore the full inheritance tax charge could be applicable
• Stamp Duty Land Tax 
– Higher rates on additional dwellings increases by 5% from 31 October 2024.
• Right to Buy – discounts to be reduced so buying a council house will cost more.
• Tobacco duty 
– to increase with RPI
• Vaping Tax – from 1st October 2026 a new tax will be introduce costing £2.20 per 10ml bottle
• Air Passenger duty 
– on shortall to increase by £ 2 on shortall and 50% on private jets (if your lucky enough to use one) from 2026
• Non-dom regime – will be abolished from April 2025 with a new residence scheme to be introduced
• Carried Interest rate – to increase from 2025 to 32%
• Energy Profits Levy 
– increase to 38%
• Private Education 
– VAT to be introduced from January 2025 and business rates relief to be removed.
• Fuel duty 
– frozen for next year
• Car Tax – Increase with RPI from 1st April 2025.
• High Income Child Benefit 
– the charge will be allowed to be paid through tax codes from 2025
Upcoming changes set to be introduced at Companies House on the 4th March 2024. These changes stem from the Economic Crime and Corporate Transparency Act which became law in October 2023.
REGISTERED EMAIL ADDRESS
One significant change is that Companies House require all companies to provide an email address. This information will be collected either on completing your Conformation Statement for existing companies or at the point of incorporation for a new company. Notably, this email address will not be published on the public register.
REGISTERED OFFICE ADDRESS
Another revision mandates that a registered office address must always have an ‘appropriate address’. Such address is one where:
- documents sent to the registered office should be expected to come to the attention of a person acting on behalf of the company.
- any document sent can be recorded by an acknowledgement of delivery.
These changes mean you will no longer be able to use a PO Box as a registered office. You may still use a third-party agent’s address provided they meet the conditions for an appropriate address.
STATEMENT OF LAWFUL PURPOSE
When you incorporate a company from 4th March 2024, the subscribers (shareholders) will need to confirm they’re forming the company for a lawful purpose.
You’ll also need to confirm the company’s intended future activities are lawful on the confirmation statement.
Existing companies will need to make a lawful purpose statement when they file their next confirmation statement with a statement date from 5th March 2024.
CHANGES TO COMPANIES HOUSE FEES
Companies House fees are set to rise as of the 1st May 2024. This is the first rise since 2016. I have given some of the key changes in the table, for a full list of changes refer to the link below.
https://changestoukcompanylaw.campaign.gov.uk/changes-to-companies-house-fees/
The Importance of Keeping Personal and Business Finances Separate
Being organised in your finances plays a pivotal role in the success of your business. However, many self-employed and small business owners often fall into the trap of using a single current account, resulting in the merging of personal and business expenses.
While there is no legal requirement for a sole trader to open a separate business account, we strongly recommend doing so. Initially, it might seem a hassle, but it will help save you time, money, and also more informed financial choices. For a Limited Company there is a legal requirement to have a separate bank account as it is seen as a distinct legal entity Here are some compelling reasons why:
Streamline Bookkeeping, Saving Time and Money
When personal and business expenses mingle, bookkeeping becomes more time-consuming and if you’re paying an accountant this can quickly accumulate substantial costs. If you have adopted bookkeeping/accounts software for your business, it’s typically intended to streamline processes and save time but having those added expenses to check through will have the opposite effect.
Assist Tax Reduction
Separating personal and business expenses will help you claim back your allowable business expenses ultimately leading to reduced tax liabilities. This applies to sole traders, self-employed individuals, and Limited companies.
Identifying Expenditure
When your business expenses are mixed together with personal bills, identifying deductible expenses becomes a complex task. The situation worsens if you wait until the end of the tax year, to categorise expenses. Memories fade, making it easy to overlook valid tax deductions or mistake personal costs for business expenses, potentially resulting in penalties from HMRC during inspections – Do you really want HMRC or your accountant looking at your personal finances!
