VAT REGISTRATION AND DE-REGISTRATION LIMITS
The VAT registration limit has increased to:-
- Registration threshold now set at £90,000
- Deregistration threshold now set at £88,000
PERSONAL TAX ALLOWANCE
For the 2024-25 tax year the personal tax allowance remains at £12,570
ISA ALLOWENCES
Tax Free ISA rate has increased from £20,000 to £25,000
CORPORATION TAX RATE
The main rate of corporation tax has remained at 25% for profits over £50,000 and for profits under £50,000 it will remain at 19%.
CAPITAL GAINS TAX (CGT)
CGT Rate – There has been no change to the lower rate of Capital Gains Tax, this remains at 18%, the higher rate of Capital Gains Tax has been reduced from 28% to 24%.
60 day CGT reporting for UK residential property disposals – There were no changes to the reporting and payment on account obligations for chargeable gains on UK residential property. The deadline to report and pay CGT remains at 60 days after the completion date.
CAPITAL ALLOWANCES
The Annual Investment Allowance (AIA) allows businesses to offset the cost of eligible plant and machinery purchases to reduce taxable profits. Currently the annual limit is £1 million for the current tax year.
DIVIDEND TAX
Tax-free dividend allowance has reduced to £500.00.
- Basic rate dividend tax has remained at 8.75%
- Higher rate dividend tax has remained at 33.75%
HIGH INCOME CHILD BENEFIT
The rate for repaying child benefit has increased from £50,000 to £60,000. The tapr range above which Child Benefit is to be fully repaid increases from £60,000 to £80,000.
NATIONAL INSURANCE RATES
National Insurance rates for Self Employed have been reduced from 9% to 6%
Employee National Insurance rates have also reduced from 10% to 8%
NATIONAL MINIMUM WAGE – NEW RATES FROM 1st APRIL 2024
The new national minimum wage rates from 1st April 2024 are as follows:
- £11.44 per hour – 21 yrs. old and over
- £8.60 per hour – 18-20 yrs. old
- £6.40 per hour – under 18yrs. old
- £6.40 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.
EMPLOYMENT ALLOWANCE
The employment allowance remains at £5,000 per tax year.
DIRECTORS SALARIES FROM APRIL 2024
Due to the decrease in NIC rates we are going to start reviewing this on a case by case basis. Please contact the office if you run your own payroll so that we can assess your individual needs and let you know the best monthly salary.
HMRC – SELF EMPLOYED TAX RETURNS MTD (Making Tax Digital)
HMRC plan to bring in MTD for all self-employed and unincorporated landlords (with a property income or gross income over £10,000) this has been delayed and is currently set to start from 1st April 2026.
PENSION PAYMENTS
The annual allowance that you can pay into a private pension pot in one tax year before you start paying tax has remained at £60,000 per year.