UK Tax Year 2024/25 – The Key Points to Know

In every country, there is a fiscal year (known as “the tax year”) which is 12-month period. In the UK, the tax year starts from 6th April to 5th April. In this article, I will mention the some key points related to individual and companies.

The Key Dates to Note

  • 6th April 2024 – The new fiscal year, usually new tax rates and regulations start from this date.
  • 19th April 2024 – The final Full Payment Submission (FPS) of the year tax 2023/24.
  • 30th April 2024 – Annual Tax on Enveloped Dwellings (ATED) return and payment.
  • 31st May 2024 – Deadline for companies to provide P60s (for the tax year ending 05 April 2024) to their employees.
  • 6th July 2024 – The P11D submission deadline for employers to HMRC to report employee benefits and expenses, also known as “benefit in kind” (BIK).
  • 31st July 2024 – Self assessment payment deadline if you are subject to the tax payment on account.
  • 5th October 2024 – Deadline to register for your self assessment tax return (the tax year of 2023/24).
  • 31st January 2025 – Self assessment tax return and payment submission deadline for the tax year ending 05 April 2024.
  • 05 April 2025 – The last day of the current fiscal year (2024/25).

The Key Tax Rates to Note

  • Income tax (individuals) – At three rates; the basic rate (at 20%), the higher rate (at 40%) and the additional rate (at 45%).
  • Personal allowance. This is remained at £12,570 (since 2021/22).
  • NI Contribution: The Class 1 employee NICs will be lowered to 8% from 10% (reduced by 2%) and Class 4 NICs (paid by self-employed) will be reduced by 3% (from 9% to 6%) from 6 April 2024.
  • Dividend allowance: Reduced to £500 from £1,000
  • Capital gains tax: The CGT rates on residential property for the higher taxpayer is reduced to 24% from 28%. The rate is remained the same for the basic taxpayer (at 18%). No changes for other capital gains tax. The annual exemption on CGT is reduced to £3,000 from £6,000.
  • Inheritance tax (IHT): No changes on this tax which is remained the same as the last tax year.
  • Corporation tax: The rates of 19% and 25% are remained the same as the last fiscal year.
  • VAT Registration: VAT registration thresholds is increased to £90,000 from £85,000 and the deregistration to £88,000 from £83,000.
  • Child Benefit Charge: The threshold for the high-income child benefit charge will be raised to £60k (currently £50k) from 6 April 2024 and the tapered charge is between £60k and £80k.

The Key Support from Us?

We are Chartered Certified Accountants based on Canary Wharf, London and we can support on your tax matters:

  • Preparation of corporation tax with annual accounts and submissions.
  • Guidance and help in preparing the tax return for the tax year ending 05 April 2024
  • Support in planning for the current fiscal year ending 05 April 2024
  • P11D preparation and submission to HMRC
  • Registration for your self assessment tax matters and guidance on this
  • The Capital Gains Tax preparation and submission with other ad hoc support where relevant
  • PAYE and CIS registration
  • PAYE and CIS tax preparation and submission to HMRC
  • VAT registration and deregistration
  • VAT preparation and return submission with MTD compliance.
  • Inheritance tax (IHT) support

To get support on your accountancy and taxation needs, please get in touch with us here at The Stan Lee. Our initial consultation is completely free without any obligations.