Food for thought before 5th April 2025
Have you considered the following:
- The Furnished Holiday Let (FHL) regime is ending and with it the ability to claim for capital allowances – we would advise buying any equipment you may have been considering by 5th April 2025.
- FHL accommodation held jointly by married couples of civil partners will from 6th April 2025 have to be split 50:50 unless the underlying property ownership is in fact unequal and held in proportions as tenants in common.
- Double Cab Pickups are to be treated as cars for capital allowances and benefit in kind purposes from 5th April 2025. You need to have ordered your new vehicle before 5th April to avoid these changes.
- National Insurance Contributions (NICs): Employers’ NICs will rise from 13.8% to 15%, with the threshold decreasing from £9,100 to £5,000. However, the employment allowance is to increase from £5,000 to £10,500 for 2025/26.
- Directors Salaries will need to be considered following the above changes
- National Living Wage is increasing to £12.21 from 6th April 2025
- Capital Gains Tax: The mainrates have increased from 10% to 20% and 18% to 24% respectively for disposals made on or after 30th October 2024 and the rate for Business Asset Disposal Relief is changing from 10% to 14% from 6th April 2025
- Qualifying Personal Pension contributions for 2024/25 need to be made before the 5th April 2025
- For a Company Pension payment to get tax relief in the company’s tax year, i.e., by its accounts year end date (AYED), it needs to be paid by the AYED.
- To get Capital Allowances allowed in a tax year, the item needs to be purchased and available for use by the end of that tax year, be it 5th April for sole traders or partnerships, or the AYED for companies.
- Remember to maximise your ISA allowance before the 5th April 2025 – you can invest up to £20,000 in 2024/25
If you would like more information on any of the above please do not hesitate to contact the office