Do you need to register for the 2024-25 tax year? Have you started working for yourself or letting property? You may need to register for Self-Assessment If you became self-employed or started letting out a residential property during the 2024–25 tax year, you may need to register for Self-Assessment with HMRC. It is important not to put this off. The registration deadline is 5 October 2025 and missing it could result in financial penalties. Many people assume that because they are paying tax under PAYE for their main job, they do not need to register for anything else. But if you have additional untaxed income, whether from a side business, self-employment, or letting out property, the onus is on you to tell HMRC and file a Self-Assessment return. Why you may need to register for Self-Assessment You must register for Self-Assessment if any of the following apply to your circumstances during the tax year 6 April 2024 to 5 April 2025: You became self-employed as a sole trader or freelan

Landlords and self-employed: Get Ready for MTD for Income Tax from April 2026 If you're a landlord or are self-employed with property or business income over £50,000 a year, significant changes are coming your way. From April 2026, you’ll be required to follow the Making Tax Digital (MTD) rules for Income Tax. This will affect how you keep records and submit your tax information to HMRC. What is MTD for Income Tax? MTD for Income Tax Self-Assessment (ITSA) is part of HMRC’s wider plan to digitise the UK tax system. It will eventually replace the traditional annual tax return for most self-employed individuals and landlords. Instead, you’ll need to keep digital records and send quarterly updates to HMRC using approved software. Who Will It Affect? From 6 April 2026, MTD ITSA will apply to: Individual landlords whose gross property income exceeds £50,000 per tax year. This includes UK and overseas rental income; and Sole traders and partnerships with combined business income over £50,000

HMRC has recently announced several significant changes to the UK tax system, aimed at simplifying tax administration and reducing burdens on businesses. These reforms, detailed in the Spring 2025 update, are set to impact small businesses across various sectors. Below, we outline the most pertinent changes that may affect your operations. Expansion of the Cash Basis for Income Tax What’s Changing? Starting from the 2024–25 tax year, the cash basis will become the default method for calculating trading profits for self-employed individuals and partnerships. Previously, businesses had to opt into this scheme, and it was limited to those with turnovers below £150,000. The new rules remove these restrictions, allowing more businesses to benefit. Implications for Your Business: Simplified Accounting: Under the cash basis, you’ll report income and expenses when they are actually received or paid, rather than when they are invoiced or incurred. Interest Deductions: The previous £500 cap on i

From 1 April 2025, the National Minimum Wage (NMW) and National Living Wage (NLW) rates have gone up. These changes apply to all UK employers and it’s essential to act now to stay compliant and avoid fines. New Wage Rates (Effective 1 April 2025) National Living Wage (21 and over): £12.21 18–20 year olds: £10.00 16–17 year olds: £7.55 Apprentices: £7.55 (https://www.gov.uk/national-minimum-wage-rates) Note: The NLW now applies to workers aged 21 and over, not just those aged 23 and up, so more employees may be affected than in previous years. What Employers Need to Do Now 1. Update payroll Go through your payroll records and make sure that every employee is being paid at least the new legal minimum. This includes part-time, zero-hours, and casual staff. If you pay a salary, make sure their hourly equivalent still meets the new thresholds. If you're using payroll software, check that it's been updated. If you manage pay manually, do a fresh set of checks to avoid any accidental underpay

Employer National Insurance Contribution changes from April 2025 In the Autumn Budget of 2024 the Chancellor announced four changes to employer National Insurance contributions (NICs), all of which take effect at the start of the 2025-26 tax year (6 April 2025). A reduction of the secondary Class 1 National Insurance (employer) threshold from £9,100 to £5,000 per annum. An increase to the main rate of secondary Class 1 National Insurance (employer) contributions from 13.8% to 15%. An increase to the maximum Employment Allowance claim amount per year from £5,000 to £10,500. The removal of the £100,000 restriction where employers with an employer NIC liability above this level in the previous tax year were unable to claim the Employment Allowance. Single-director companies are not eligible for the employment allowance Limited companies cannot claim Employment Allowance if they have just one director and that director is the only employee liable for secondary Class 1 National Insurance. F