Tax and Company Law changes for 2024-2025 tax year

April 17, 2024 by Natalie Brewer
Tax and Company Law changes for 2024-2025 tax year

The 2024/2025 tax year started on 6th April, 2024. The new tax year has brought with it a handful of tax, employment, and company law changes that small business owners and managers need to know. Here’s an overview of some of the key changes – remember to speak to your accountant or lawyer for more information about how these may impact your business.

Increase in the National Minimum Wage

From 1st April 2024, the National Minimum Wage and National Living Wage rates have increased. The new rates are:

 21 and over18 to 20Under 18Apprentice
April 2024£11.44£8.60£6.40£6.40

National Living Wage (for those aged 21 and over)

National Minimum Wage (for those of at least school leaving age)

Dividend allowance halved

From 6th April 2024, the tax free dividend allowance halved so that individuals who receive dividend income are now only entitled to £500 tax free.

Capital Gains Tax annual exempt amount reduced

The Capital Gains Tax annual exempt amount has been permanently fixed at £3,000 for individuals. 

National insurance cuts

Main rate Class 4 National Insurance Contributions (NICs) for the self-employed have been cut by 2p, reducing the rate from 9% to 6%. The main rate of employee National Insurance has reduced from 10% to 8%. 

Self-employed people with profits above £12,570 are no longer required to pay Class 2 NICs. 

Business rates relief extended in England

The 75% business rates relief for retail, hospitality and leisure businesses has been extended from 1 April 2024 until 31 March 2025. The relief applies up to a cash cap limit of £110,000 per business.

VAT registration threshold increased

The VAT registration threshold has increased from £85,000 to £90,000 to help more small businesses mitigate the administrative and financial burden of VAT.

Companies House

New requirements for how companies registered in England and Wales interact with and submit information to Companies House. From now on, Companies House has an enhanced ability to verify the identity of company

directors, there will be restrictions on who can file documents at Companies House, and there are new company record keeping requirements.

Many of the new requirements impact larger corporations with subsidiaries but you may need to verify the identity of directors and stakeholders with more than a 5% holding in a business. Changes to who may file with Companies House may impact you too.

Increase to Companies House fees

From 1st May, Companies House fees will increase including:

  • Incorporating a limited company online: £12 to £50
  • Registering a community interest company online: £27 to £65
  • Incorporating a limited company by post: £40 to £71
  • Changing a limited company name: £8 to £20

Flexible working changes

Employees now have the right to request flexible working from day one of a new job rather than after six months, and can make two flexible working requests in a 12-month period. Employers have two months to make a decision on a flexible working request, rather than three months. 

Carer’s Leave

Employees caring for a dependent with a long-term care need have the right to one week of flexible unpaid leave per year.

How the flexible Hour Hands team supports your business

Hour Hands is made up of experienced EAs and very talented bookkeepers. All are ready to support you with those urgent and important tasks that you just don’t have the time to complete. From booking travel, to managing your diary and managing your accounts and tax returns – we can help you complete tasks and shift them off your to-do list!. By outsourcing your tasks, you can flex when you need support – be it ongoing support or for a one off project or resolving a particular task. 

To find out more simply call us on 01727 818262. We will ask how we can support you and offer a solution either on an hourly rate or package cost. The choice is yours – we’re here to help.