Spring is in the air and by the end of the week we’ll have officially moved into the season! With the clocks about to go forward, stepping from one financial year to the next, days growing longer and lighter, and nature waking up outside the windows, this time of year is all about looking forwards. So in this blog, we’ll highlight some important spring dates and deadlines, to ensure you’re not left out of step.
What are My Tax Year Deadlines and Obligations?
The end of the current tax year is about to be upon us, and the new one starting afresh (April 5th/6th). Of course you’ll have filed any personal self-assessment tax returns and payments for the 2023/4 year by the 31st January deadline (October 31st 2024 for paper tax returns). How keen do you feel for your 2024/5 tax return? In 2024, HMRC revealed almost 300,000 self-assessment customers filed their tax return in the first week of the new tax year, nearly 70,000 people on the opening day (6th April) itself!
While that might be a bookkeeping step too far, early is always better than late to allow for checks, queries and avoid late fees. At ICS Accounting, we’re keen and ready to file clients’ returns as soon as you want to pass us your tax information, saving you (and HMRC) battling a last-minute backlog.
Useful things you can do before the 5th April deadline include using your ISA allowance, topping up pension contributions to take advantage of tax relief, using you tax-free Capital Gains Tax allowance, claiming business expenses and any tax reliefs eligible, and reviewing investments and dividends.
The start of the new tax year is a good time to review savings and investments as ISA, pension, and tax-free allowances are reset, adjust workplace benefits and pension contributions, check for any tax code errors, and make sure your income and expense record-keeping is on track from the start of the year. (Is that all? If that’s made you light-headed, remember that tax experts like ICS Accounting are here to relieve you from tax hassles!) Timing your retirement for the turn of the tax year can also carry financial advantages- but we’re not considering that yet!
Ready for some Fundamental Fiscal Changes?
While we’re looking ahead, several changes from Rachel Reeves’ autumn budget come into effect on 6th April, as well as regular annual inflation-linked rises, affecting personal and business tax and finance. For many, it will be about balancing inflationary rises (council tax, car tax, increased employer National Insurance contributions) with payment and allowance rises (state pension, national living wage, universal credit).
Employers need to ensure they are ready for the upcoming increase in the National Minimum Wage, as follows:
- Age 21 and over: increasing from £11.44 to £12.21 per hour (6.7% increase)
- Age 18-20: increasing from £8.60 to £10.00 per hour (16.3% increase)
- Age 16-17 and Apprentice: increasing from £6.40 to £7.55 per hour (18% increase)
Employer National Insurance contributions are increasing from 13.8 per cent to 15 per cent. The threshold at which National Insurance is due is also being reduced, from £9,100 a year to £5,000 a year. Businesses will be able to reduce their employer National Insurance contributions by up to £10,500 per year, up from the current £5,000. Designed to provide financial relief to smaller businesses with employees, Employment Allowance can be claimed through payroll systems. All these changes could make outsourcing company tax and payroll to business accountancy experts a sound move, ensuring you are both compliant and claiming any relief eligible.
Retail, hospitality, and leisure businesses will continue to receive business rates relief throughout 2025, but the level of relief is dropping from 75 per cent to 40 per cent, capped at a maximum of £110,000. Business rates themselves will be charged on a new rateable value, reflecting changes in property values.
What Can We Expect from the Spring Forecast?
Chancellor Rachel Reeves has announced that the Spring Forecast will take place on 26th March. This comes under the legal requirement for the Office for Budget Responsibility to produce two forecasts each financial year. Under some previous chancellors, the spring forecast has effectively been a “mini budget”, however, Rachel Reeves has already committed to announcing only one major fiscal event (the autumn budget) per annum, as a tool to market stability.
Therefore, we are unlikely to see any major tax changes, especially as the announcement comes just days before new tax and financial changes come into effect. However, the forecast will provide an invaluable guide to the financial health of the country, half-year effects of the autumn 2024 budget, and prospective impacts for business planning. At ICS Accounting, we will be interrogating every detail of the spring forecast, and updating you on everything you need to know.
Spring Forward Without Stress
In times of upcoming deadlines, financial and regulatory changes, it can be easy to feel swamped. However, it’s all about perspective. You might not be one of the 70,000 people filing their tax return on April 6th, but keeping on top of paperwork, digital records and requirements is the key to saving you time, stress and money, and the new financial year is the perfect time to start.
April is also stress awareness month, a great prompt to look at steps you can take to reduce pressures and be kind to yourself (see last month’s blog for our great tips for boosting personal and business health). At ICS Accounting, we take the stress out of every aspect of tax, payroll, finances and more, so whether you are self-employed, contractor, employer or limited company, don’t hesitate to call one of our friendly team on 0800 195 3750, or email info@icsuk.com, for no-obligation advice, hassles off your to-do list, and a weight off your shoulders.
