Monthly Newsletter

1. HMRC Updates: New Measures on Tax Reliefs

Self-Assessment Filing Deadline Extension
As we approach the end of the tax year, HMRC has announced an extension for some self-assessment taxpayers. Those facing issues with submitting their returns due to specific disruptions can now apply for a 30-day extension. This measure will be particularly helpful for individuals or businesses in sectors impacted by recent economic conditions.

Making Tax Digital (MTD) Expansion
HMRC continues its rollout of Making Tax Digital (MTD), and from April 2025, MTD will be extended to all VAT-registered businesses, including those with income under the VAT threshold. We strongly encourage you to start preparing for this transition, which requires digital record-keeping and submitting VAT returns through MTD-compatible software.

2. Companies House: Changes to Filing and Company Registration

Mandatory Companies House Filings for Directors and Beneficial Owners
In line with recent reforms to improve transparency and tackle fraud, Companies House has introduced new rules requiring companies to submit updated information about their directors and beneficial owners. This includes a requirement for businesses to confirm or update their filings regularly, which must now be done annually. Please ensure that your company’s information is accurate to avoid penalties.

New Confirmation Statement Requirements
The confirmation statement (previously known as the annual return) must now include more detailed information on your company’s financial standing, ownership, and shareholding. The government has also made it a requirement for all companies to provide their true registered address and a verification of any changes to the company’s financial situation.

3. Tax Legislation Changes: What You Need to Know

Corporate Tax Rate Increase for Large Companies
From April 2025, the government will be increasing the corporation tax rate for businesses with profits over £250,000 to 25%. However, smaller businesses with profits under £50,000 will continue to benefit from the 19% tax rate. This progressive system will be crucial for businesses to keep track of their earnings and tax obligations.

Inheritance Tax (IHT) Update: New Thresholds
The inheritance tax threshold has been raised for certain assets, particularly for agricultural and business property relief. If you have any concerns about potential IHT liabilities for your estate or business, it's crucial to discuss planning strategies with us before the tax year ends.

Research & Development (R&D) Tax Credit Changes
Changes to the R&D tax credits have been announced, aiming to simplify the process for claimants. There are now clearer guidelines on eligible expenditures, and more streamlined systems to access these credits, which can benefit innovative companies in any sector. If your business is involved in R&D, we advise you to review your eligibility for these valuable credits.

4. Important Dates to Remember:

• 5th April 2025 – End of the tax year. If you haven’t already, now is the time to review your accounts for tax planning.
• 31st May 2025 – Last day to submit your Company Confirmation Statement to Companies House.
• 1st July 2025 – Deadline for VAT-registered businesses to comply with Making Tax Digital for VAT.