New Business Tax Laws and Ways to Optimise Tax Reliefs in 2025

With the start of the new financial year, companies must up their tax game to avoid penalties and make the most of the available opportunities. For this, awareness of new rules and changes is essential. At the same time, businesses need trusted accountants who can effortlessly navigate them through the complex tax landscape. Here’s a quick look at some important highlights for the new financial year from the perspective of tax planning, obligations, and strategic growth.

Labour’s Tax Policies

The earning threshold for National insurance for employers has been reduced. However, the payment rate increased from 13.8% to 15%. If you have employees, you will pay more for National Insurance for each of them starting in April 2025. Leisure, hospitality, and retail space companies can leverage business rates relief for the following year. But the relief amount has been reduced to 40%, with a maximum limit of £110,000. How do we manage these aspects? Consult accredited chartered accountants London for guidance.

Furthermore, market conditions will be essential in determining property value rates. For 2025-2026, the small business multiplier has been fixed at 49.9p, and the standard multiplier has risen to 55.5p. Changes to disposal relief on business assets will be implemented gradually.

This business relief impacts the capital gains tax (CGT). Every vehicle now has to pay a higher road tax from April 2025. The standard rate has increased by £10. Nevertheless, any vehicle registration made after 1 April 2017 may be subject to a lesser impact. Old vehicles with a large carbon footprint will have to pay more, almost double the current rate.

From April 2025, residence-based rules will replace non-domicile status. This means that non-doms will pay tax on their total income and profits, regardless of whether they bring their earnings into the country. At the same time, ex-doms can carry their assets to the country at a lower tax rate under a three-year programme. For those managing payroll or proof of income during this transition, paystub templates can be a useful resource.

Tax Relief Maximisation

Keeping track of all the latest tax implications can be overwhelming for any business. When you work with Howlader & Co chartered accountants, you can overcome this hurdle and utilise the proper tax saving or relief opportunities.

For example, they can guide you on whether you should remain a limited company or sole proprietorship to reduce your tax obligations and create a suitable tax-friendly business structure. These decisions matter because limited companies are charged corporation tax, while sole traders must file a return on business profits.

A sole proprietorship is often considered a straightforward process, but it can make you personally responsible for settling any business debts. Due to this, you can lose your house. In the other case, personal liability is relatively less than the amount invested in your business. As a result, individual assets can be safe.

Being on high of the changing tax scenario is a must, regardless of whether you are a small or large company. Any oversight could cost you and your business dearly. You can avoid these potential risks by consulting accredited chartered accountants in your city. Their extensive knowledge and ability to adhere to all policy changes that affect businesses enable them to guide their clients safely and securely.