The new tax year has brought with it a few changes in tax rates and allowances, the main ones to be aware of as follows:
GOOD NEWS
Employee National Insurance reduced from 10% to 8%
Self-employed National Insurance reduced from 9% to 6%
Capital Gains Tax rate for residential property gains reduced from 28% to 24%
BAD NEWS
Dividend allowance reduced from £1000 to £500
Capital Gains Tax annual exempt amount reduced from £6000 to £3000
No increase in personal tax allowance or in basic rate tax band
2024/25 PERSONAL TAX RETURNS
Everyone who has to file a tax return should have received notification either by post or email from HMRC. Here are three good reasons why you should file your tax return as early as possible:
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- You don’t have to pay your tax any earlier, but you do get more notice of how much tax you are going to have to pay so that you can plan accordingly.
- If you are due to make a payment on account on 31 July and it turns out after completing your return that your tax bill is lower than the previous year you can reduce your July payment accordingly (but if it is higher, you don’t have to pay any extra in July).
- If we prepare your tax return for you, we offer a 10% discount on your fee if you let us have all your information before the end of July.