As the 2025/26 tax year approaches, it brings several significant changes to HM Revenue & Customs’ (HMRC’s) rules that will impact your business operations, financial reporting, and tax management.
Here is a quick rundown of the new rules that are planned for 2025 and beyond:
Basic period reform:
- Fully implemented by 2025, this reform changes how self-employed individuals and partnerships calculate taxable profits, aligning tax years with accounting periods. This change is complex, and it is best to seek professional advice if you have been affected.
New data collection requirements:
- From the 2025/2026 tax year, HMRC will require additional information via Income Tax Self-Assessment and real-time returns, impacting:
- Detailed reporting of employee hours through real-time information Pay As You Earn (PAYE) reporting.
- Separate reporting of dividend income and shareholding for shareholders in owner-managed businesses.
- Start and end dates of self-employment on Self-Assessment tax returns.
Making tax digital for Income Tax Self-Assessment:
- This will require businesses and landlords with qualifying income to maintain digital records and update HMRC each quarter using compatible software. Beginning in April 2026 for businesses and landlords earning over £50,000 and extending to those with income over £30,000 in April 2027.
VAT registration threshold increase:
- As a reminder, the threshold for VAT registration has risen from £85,000 to £90,000, easing the VAT-related burden of small businesses.
- It is also important to note that you must register for VAT if you expect that your annual total taxable turnover is going to go over the £90,000 threshold.
To navigate these changes with ease, speak to one of our tax advisers who will be able to assess how the new changes will impact you specifically.
They will also be able to ensure your accounting software is compatible with Making Tax Digital (MTD) requirements.
If you are unsure about the new legislation, get in touch with one of our tax advisers.
Our BLOG
How tax wrappers can mitigate the impact of rising Capital Gains Tax
TESTIMONIALS
The staff at CST are always very friendly and approachable.… Read more “Mr JD Dolling, SW Heating Equipment Ltd”
We have been with CST for more than seven years… Read more “Doris Francis, Engineering Services (Bridgend) Ltd”
Our business has been handled by CST for many, many… Read more “Mr & Mrs Rise”
I moved my business to Clay Shaw Thomas because I… Read more “Sandra Wilkinson of Sage Marketing”
The audit was well planned and executed efficiently, with minimum… Read more “GE Carpentry”
Privately and within the company Clay Shaw Thomas provides a… Read more “Seashore Enterprises”
I am very happy with the service from CST. An… Read more “Mr Atkinson “
The family connection with CST goes back many years and… Read more “Dr Jones”
CST are very efficient, courteous and proactive when dealing with… Read more “Mr CMG Adams”
I have been a client for over twenty years and… Read more “Mr J T Wall”
Always one step ahead of the game, CST have helped… Read more “Mr RT Evans”
CST Staff always give unbiased advice in a clear and… Read more “Mr L Branfield”
It has been a professional pleasure working with CST, they… Read more “Mr P Jenkins”
SUBSCRIBE to our list
If you would like to see full details of our data practices please visit our Privacy Policy and if you have any questions please email tellmemore@clayshawthomas.com.