Useful Information

Main items of interest to the majority of small businesses will be:

• Personal allowances, taxation and national insurance rates, please view the tax data information page above, noting the changes made to Dividend tax rates.
• From 6 April 2026 100% relief for APR and BPR will be limited to a combined £1m with any excess obtaining only 50% relief. Any unused allowance may be transferred between spouses.
• The Corporation Tax rates remain at 25% for Profits over £250,000, Profits below £50,000 will remain taxed at 19%. A tapered rate applies for Profits between £50,000 and £250,000 to merge the two rates.
• The main rate of Capital Allowance writing down allowances will reduce in April 2026 to 14% from 18%.
• VAT registration limit remains at £90,000 and the deregistration limit £88,000.
• Changes to the tax treatment of Double Cab pick ups purchased from 6 April 2025, see the guidance here.
• Proposals to raise the Income Tax rates payable on Income from Property and Savings by 2% for all tax bands.
• MTD for ITSA from April 2026, see below.

VAT registered businesses are required to follow the Making Tax Digital rules by keeping digital records and using software to submit their VAT returns with Digital Links, see guidance here.

MTD will be extended to Income Tax from 6 April 2026, for commentary on the current proposals read here.

From 1st March 2021 supplies of Building and Construction services must operate under new Reverse Charge Regulations. The rules can be quite complicated so please contact us if you have any concerns or queries on how they will apply to you.

https://www.gov.uk/government/publications/restrictihttps://www.gov.uk/guidance/vat-domestic-reverse-charge-for-building-and-construction-servicesng-finance-cost-relief-for-individual-landlords/restricting-finance-cost-relief-for-individual-landlords

The CIS scheme contains many penalties and risks to Contractors. For more information on how the scheme works, click on the link below for HM Revenue Customs guidance but preferably please contact us for a more detailed explanation. Beware of H M Revenue interpretation on self employed status, it is not law and incorrect, there have been many tax cases on this issue in the last couple of years which detail the current law. Also, care must be taken to ensure gross payment status is not lost through late payments of tax.

https://www.gov.uk/topic/business-tax/construction-industry-scheme

New rules on Personal Pension withdrawals and annuities were introduced in April 2015, we recommend consulting your IFA on the specific changes but contact us with a view to tax efficient timing of future contributions and withdrawals:

https://www.gov.uk/government/news/pension-changes-2015