A TAX guide for the new financial year has been produced by the team at JF Hornby & Co – and while some of the key figures remain unchanged, there are a few updates worth noting.
The headline news is that most of the main personal tax thresholds and allowances have been frozen again, but there are some important changes that may impact you or your business.
National Insurance: A Continued Shift
The main employee rate of National Insurance remains at 8% for earnings between £242 and £967 per week, but remember – the lower threshold for contributions continues to affect eligibility for certain benefits. And for self-employed individuals, Class 2 NICs are now effectively voluntary for those with lower profits, although Class 3 contributions remain available for anyone looking to protect their State Pension record.
Capital Gains Tax: Higher Rates on the Horizon
One of the biggest talking points this year is the change to Capital Gains Tax rates. From April 2025, the higher rate for residential property disposals has risen to 24%, up from 20%. Business Asset Disposal Relief still offers a reduced rate – but that’s also gone up slightly, with gains now taxed at 14% (up from 10%) on the first £1 million.
Wage Changes and Pension Planning
The National Living Wage is rising again – with a new rate of £12.21 an hour from 1 April 2025 for workers aged 21 and over. Statutory maternity, paternity, and shared parental pay have also seen a small uplift.
On the pensions side, allowances remain the same – which offers continued scope for tax-efficient savings, particularly for higher earners.
Other Key Updates
Dividend and savings allowances remain frozen.
Corporation Tax bands are unchanged – but keep an eye on marginal relief if you fall into the £50,001 to £250,000 bracket.
VAT thresholds are increasing slightly, with the new registration limit now set at £90,000.
Property taxes remain complex, especially for additional properties or purchases in Scotland and Wales.
Download the Full Guide
You can download our full guide to all the 2025/26 tax rates and allowances by clicking this link J_F_Hornby_&_Co_(W-6132008)_TR8_Apr25 tax guide. It’s packed with the key figures and thresholds you need to plan ahead.
And of course, if you’d like help working through the detail or understanding how the changes might affect you, don’t hesitate to get in touch with the team on 01229 588077 or jfh@jfhornby.com.
