As we begin a new tax year, there are several important changes and considerations that may affect you or your business. Taking a proactive approach now can help you stay compliant, avoid unexpected costs and plan more effectively for the months ahead.
Below is a summary of the key updates and what they mean in practice.
Starting the New Tax Year on the Right Foot
The new tax year presents an opportunity to review your financial position and set clear plans in place. Whether you are running a business, managing a property portfolio or handling personal tax affairs, early planning allows you to make informed decisions and avoid unnecessary pressure later on.
Making Tax Digital (MTD) Is Now in Force
Making Tax Digital is now a requirement for self-employed individuals and landlords earning over £50,000.
This means:
- Maintaining digital financial records
- Submitting quarterly updates to HMRC
- Completing an end-of-year declaration
There is also a new penalty points system for late submissions and payments, which can lead to fines if thresholds are exceeded.
This represents a significant shift from the traditional annual tax return and many will need to adapt their processes to remain compliant.
Capital Gains Tax Changes for Business Owners
If you are considering selling your business, it is important to be aware that Capital Gains Tax may now apply at a rate of 18% on qualifying gains.
Crucially, this tax is payable at the point of completion of the sale, even if the proceeds are received over time in instalments.
This can create cash flow challenges if not factored into negotiations, so early planning and advice are essential.
Read our latest blog on CGT changes
Rising Employment Costs
Recent increases to both minimum wage and employer National Insurance will have a direct impact on businesses with employees.
As of 1st April, the UK National Living Wage (21 and over) has increased by 50p to £12.71 per hour. 18-20 year olds will receive £10.85 (85p increase) and 16-17 year olds/apprentices will receive £8.00 (45p increase).
For many, particularly in sectors such as retail and hospitality, this will affect margins and overall cost structures.
Now is a good time to review:
- Staffing levels and shift patterns
- Pricing strategies
- Payroll accuracy and forecasting
Understanding the financial impact early can help you make more informed decisions.
Get in touch if you have any questions
Inheritance Tax and Pension Changes
From April next year, defined contribution pension schemes will once again be included within an individual’s estate for inheritance tax purposes.
There are steps that may help mitigate the impact, such as:
- Taking up to 25% of your pension as a lump sum
- Gifting assets during your lifetime
However, gifts are only fully exempt from inheritance tax if you survive for seven years, with a sliding scale applied if this is not the case.
This is an area where careful, forward-looking planning is particularly important.
Read our latest blog on Pensions and Inheritance Tax
Cash Flow and Ongoing Planning
With multiple changes now in effect, maintaining a clear and up-to-date view of your financial position is more important than ever.
Regular reviews, accurate record-keeping and forward planning can help you:
- Anticipate tax liabilities
- Manage cash flow effectively
- Avoid last-minute decisions
We are here to help
The common theme across all of these updates is the importance of planning ahead.
Whether you need support with:
- Making Tax Digital compliance
- Business accounting and forecasting
- Tax planning or structuring
- Property or personal tax matters
We are here to provide clear, practical advice tailored to your situation.
If you would like to discuss any of the above or review your position for the year ahead, please do get in touch.