Please note that ‘tax years’ run to 5 April each year and that, for example, 2025/26 signifies the year to 5 April 2026. Your personal allowance Your tax-free personal allowance will remain at £12,570 in 2025/26. The personal allowance is partially withdrawn if your income is over £100,000 and then fully withdrawn if your income […]

As expected, and with immediate effect from the budget date of 30 October 2024, the rates of capital gains tax (CGT) have been increased on some asset types as follows: 2025/26 2024/25 Annual exempt amount £3,000 £3,000   From 30 October 2024 Prior to 30 October 2024 Rate of CGT on assets other than residential […]

Employers must pay their employees at least the NLW, for workers aged 21 and over, or the NMW otherwise. The minimum hourly rates change on 1 April each year and depend on the worker’s age and if they are an apprentice.   1 April 2025 – 31 March 2026 1 April 2024 – 31 March […]

For employees The national insurance contributions (NICs) rates and annual thresholds for employees for 2025/26 are as follows: Employees’ Class 1 NICs 2025/26 2024/25 Lower earnings limit (LEL) £6,500 £6,396 Primary threshold (PT) £12,570 £12,570 Upper earnings limit (UEL) £50,270 £50,270 Earnings between the LEL and the PT 0% 0% Earnings between the PT and […]

Motor vehicles Continuing the topic seen above on double cab pick-up vehicles, a similar change in approach applies in relation to plant and machinery capital allowances claims. From April 2025, most double cab pick-up vehicles with a payload of 1 tonne or more will need to be treated as cars for capital allowances purposes. This […]

Self-employed individuals pay Class 2 and Class 4 National Insurance Contributions (NICs). The relevant rates and thresholds are:   2025/26 2024/25 Class 2 NICs per year – mandatory* £nil £nil Class 2 NICs per year – voluntary* £182.00 £179.40 Small profits threshold (SPT) £6,845 £6,725 Lower profits limit (LPL) £12,570 £12,570 Upper profits limit (UPL) […]

If you let out residential or commercial property, the profits are taxed as part of your ‘other income’. If you sell property that has been rented out, capital gains tax is likely to apply. Generally, rental business activity attracts fewer tax reliefs than trading ventures. However, if a residential property meets the strict definition of […]

From 1 April 2025, the VAT registration and deregistration thresholds will remain at £90,000 and £88,000 respectively. There have been no changes to the rates of VAT and the standard rate continues to be set at 20%. In a key change to VAT, private school fees, which have been exempt from VAT, will be made […]

Rates from 1 April 2025 Corporation tax rates and thresholds for the financial year to 31 March 2026 remain unchanged as follows: Financial year to 31 March 2026 Main rate 25% Small profits rate 19% Small profit threshold £50,000 Main rate threshold £250,000 Marginal relief fraction 3/200 Effective marginal relief rate 26.5% The thresholds must […]

Despite numerous rumours of possible changes to the taxation of pensions in the run up to the budget, the Chancellor decided not to make significant changes after all. The ability to receive a 25% tax-free lump sum of up to £268,275 (or higher in some cases) remains. Individual contributions continue to attract income tax relief […]