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UK Tax Update 2024/25
Entrepreneurs and business owners recognise the critical significance of staying abreast of UK tax laws. While profits are cherished, allocating even a fraction to tax deductions can be challenging. Hence, maintaining awareness and understanding of the latest regulations introduced in the 2023/24 UK tax updates is essential for prudent financial management.
According to the latest UK tax update for 2024/25, the income tax rates will remain unchanged at 20%, 40%, and 45%. If your earnings are up to £12,570, there will be 0% tax. However, if your total taxable income is £37,700 or less, 20% of it will be deducted as tax. For gross earnings between £37,701 and £125,140, the tax deduction rate will be 40%. However, if your income goes beyond £125,140, then 45% of it will be deducted as tax.
Individuals must stay informed about the UK Tax Update to accurately calculate personal tax and manage finances while complying with regulations.
For individuals on the brink of inheriting or recently gifted with an estate, knowing the latest inheritance tax thresholds can be your shield against future legal quagmires!
First things first, as per the UK Tax Update 2023/24, CTG, or Capital Gains Tax, is applicable only on the profits made when selling a category of assets. This category of assets includes investments, stocks, properties, or even businesses. In the wake of the recent update made by the UK government, the annual exemption for CGT has been reviewed.
Under this review, thankfully, the CTG allowance has been reduced to £3,000. It is, therefore, of utmost significance to keep abreast of these updates, ensuring you can adapt your financial strategies accordingly and minimise any potential tax liabilities.
The UK government has implemented numerous changes that have reshaped how businesses handle their VAT responsibilities. Among these updates, Making Tax Digital (MTD) for VAT stands out as a significant development. Now, even businesses with a taxable turnover below the VAT registration threshold are required to adhere to MTD for VAT, marking a fundamental shift in VAT compliance requirements.
As for the construction industry, the VAT law, which came into effect in March 2021, is still applicable today.
Don’t know how to comply with the latest tax regulations? No need to panic, as below we have compiled some of the key factors that will ensure you stay compliant with the latest tax regulations and fuel the growth of your business:
Keep an eye on updates from HMRC.
Stay in the loop with professionally qualified accountants, as they’re the best in this practice.
Periodically review your tax strategies, ensuring that you comply with the latest regulations.
Utilise technology to help simplify business operations.
Navigating tax regulations and staying on top of submission deadlines can be a daunting task for business owners. But luckily, you can still escape that part and only enjoy the bounties of being your boss. Admiring how? Don’t spoil your peace of mind, as RR Accountants boasts a team of ACCA-qualified accountants who are ready to assist you.
We offer expert financial guidance and sound risk management advice to help you optimise your business strategically.
Let's fix your accounting problems with RR Accountants's expert solutions. We're your personal accountants for finance, taxes, company advising, self-assessment and beyond. Use our customised resources to pursue your accounting.
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