6 key tax changes taking place on the 6th April

As a business owner, staying informed and up to date with any tax changes is important to ensure you are remaining compliant and are also tax efficient.

Below we highlight 6 key upcoming tax changes which will be coming into effect from 6th April.

Employers’ national insurance contributions:Employers will see an increase in the employers’ NI rate, rising from 13.8% to 15%, for paydays on and after 6th April. It is important to ensure financial forecasts take into account this increased NI cost.
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National insurance contributions employment allowance:Employment Allowance will increase from £5,000 to £10,500 and the £100,000 threshold for eligibility will be removed, to expand it to all eligible employers with employer NICs bills. This change will provide some relief to the increase in Employer allowance for employers, it is key to ensure that you remember to claim your employment allowance.

Non-UK domiciled individuals:Non-domiciled individuals benefit from a number of tax exemptions and reliefs for income tax, capital gains tax and inheritance tax. This is being revoked and replaced with a new scheme from the new tax year. This overhaul will significantly change the taxation of non-domiciled individuals, though certain transitional provisions will apply. Under the new scheme, individuals who are new arrivals to the UK will receive 100% relief on foreign income and gains during their first four years of UK tax residence, provided they have not been UK tax resident in any of the previous 10 consecutive years.

Tax return info requirements:Enhanced tax return requirements will be introduced from 6th April and will apply for tax returns for 2025/2026 going forward. One significant change is that the voluntary requirement for taxpayers who begin or cease trading to report the date of commencement or cessation on their tax return will become mandatory. Additionally, directors of owner-managed businesses will face new reporting requirements for dividend income on their self-assessment tax returns. Under updated HMRC guidelines, directors will be required to itemise dividend income from each company in which they hold shares. This income must be reported separately from other dividend income and will become a compulsory part of the self-assessment process.

Rates of CGT:The rate of Capital Gains Tax that applies to Business Asset Disposal Relief and Investors’ Relief from 10% to 14% for disposals made on or after 6 April 2025, and from 14% to 18% for disposals made on or after 6 April 2026. As per the government website, this measure forms part of a package of changes to Capital Gains tax that raise revenue, while ensuring that the UK tax system remains internationally competitive. For more information please see here - https://www.oldfieldadvisory.com/articles/2024/11/651-key-changes-to-capital-gains-tax-and-calculator

Double cab pick-ups:The Government will treat double-cab pick-up vehicles (DCPUs) with a payload of one tonne or more as cars from the 5th of April 2025. For Corporation Tax this will be effective from 1st April 2025, and from the 6th of April 2025 for Income Tax. The government has specifically confirmed however, that DCPU’s that have been bought, leased or ordered before these dates will continue to be treated as commercial vehicles, up until the earlier of disposal date/lease end date or 5th April 2029.

Whilst inheritance tax changes aren’t coming into effect this year, they are very much on the radar and coming into effect soon. It’s important to begin succession and IHT planning now, as some strategies may require up to 7 years to be fully effective. If you would like to discuss IHT and succession planning with a member of our tax team, please fill out the following form.

Tax affairs are complicated, and we would always advise you to speak with your advisers before making any changes.  For more information on how we can help you and your business please contact us via email or call and we will be happy to advise on the best solutions for your business.

Please note: This article is provided for information only and was correct as at the time of writing (03/04/25). Any lists and details provided above are not exhaustive and are not intended to be full and complete guidance.  No action should be taken without consulting detailed legislation or seeking independent professional advice. Therefore, no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this article can be accepted.