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

  • Personal allowances and national insurance rates, please view the tax data information page above.
  • Don’t forget the £1,000 a year in tax-free allowances for property or trading income available since April 2017.
  • 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.
  • VAT registration limit raised to £90,000 from April 2024 and the deregistration limit raised to £88,000.
  • The rules for Class 2 NIC have changed again. For the 2023/24 tax year, you pay Class 2 NIC if your profits are above the Lower Profits Threshold of £12570, this liability has been removed in 2024/25 but you will be be given an NIC credit for the year. If your profits are below the Small Profits Threshold of £6,725 then you can choose to pay Voluntary Class 2 NIC. If your profits from self-employment in 2023/24 are between the Small Profits Threshold and the Lower Profits Limit then there is no Class 2 NIC to pay but you will again be be given an NIC credit for the year.