Please see below some of the changes to the UK tax system, announced at the recent Autumn budget:
INCREASES TO NATIONAL MINIMUM WAGE (NMW) – From April 2025 there will be a 6.7% increase to the over 21 rate bringing it to £12.21 and a 16% increase to 18-20 rate to £10
NO CHANGES TO INCOME TAX AND VAT – Income tax frozen until April 2028
NATIONAL INSURANCE – Employers NIC to increase from 13.8% to 15% from April 2025 and the threshold of it becoming due to be paid to be decreased from £9100 to £5000 (therefore resulting in a higher NIC liability for employers) NO CHANGES TO EMPLOYEES NIC
EMPLOYMENT ALLOWANCE – Being increased April 2025 from £5000 to £10,500, all employers eligible.
CORPORATION TAX – No increase, until next election
BUSINESS RATES – 75% discount to be reduced to 40% in April 2025 (future plans to reduce business rates from April 2026 for retail, hospitality and leisure)
CAPITAL GAINS TAX – Rate increases from 30 October 2024 (10% rate to 18% and 20% rate increased to 24%). Business Asset Disposal Relief and Investors Relief rates also increased from April 2025 and again in April 2026
STATE PENSION – Weekly amounts rising by 4.1% from April 2025
NON-DOMICILIARY TAX STATUS – Non Dom tax regime to be scrapped completely from April 2025
STAMP DUTY – Increased to 5% from 1st November 2024 on second homes and thresholds to drop from April 2025
HMRC CHANGES – 5000 new compliance officers to be employed to combat tax fraud and criminal investigation work. Interest rates to rise on overdue unpaid tax
There have been no changes announced for the current Making Tax Digital (MTD) timeframes, currently being April 2026 for 50k and above self employed workers and landlords/April 2027 for 30k and above self employed workers and landlords.
Companies and Partnerships to be confirmed at a later date.
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