Changes from April 2025 for business owners to consider

As we approach a new financial year, our Business team outlines what changes business owners should consider, including new mandatory requirements for tax returns and the increase in capital gains tax rates.

Self assessment tax return requirements
HMRC are adding new mandatory tax requirements from 6 April 2025, which include:

• If you start or cease to trade during a tax year, you must report the date of commencement/cessation in the tax return for that year. This was voluntary, but is now mandatory.
• Directors of close companies must disclose their appointments and also provide further information. This includes the name and registered number of the close company, value of dividends received and the percentage shareholding in the company during the year.

Rates of capital gains tax (CGT)
The hot topic for business owners is the increase from 10% to 14% for gains attracting Business Asset Disposal Relief (BADR) from 6 April 2025. This is going up again in April 2026 to 18%.

The lower and higher rates of CGT applying to gains other than BADR had already increased on 30 October 2024 from 10% and 20% to 18% and 24% for individuals, on chargeable gains.

Employer National Insurance contributions
For paydays on or after 6 April 2025, the rate of secondary National Insurance contributions (NICs) paid by employers on an employee’s earnings above the secondary threshold will increase from 13.8% to 15%, and the secondary threshold will reduce from £9,100 to £5,000 per annum. This is an additional £615 per employee per year.

However, the maximum amount of NIC employment allowance is increasing from £5,000 to £10,500. A key restriction has also been removed, so employment allowance is no longer restricted to employers who had a prior year tax secondary NIC liability of £100,000 or less.

Other restrictions may remain, so seek advice on whether you do qualify.

Double cab pick-ups
Check out Laura’s latest blog on these changes: Changes to the tax treatment of pick-up trucks | Larking Gowen

Furnished holiday lets
Read our brochure around the changes to Furnished Holiday Lets: Furnished Holiday Lets tax update | Brochures | Larking Gowen

Need help?
If you have any questions about the above or any other changes for 2025/26, get in touch! 

Please contact your usual Larking Gowen advisor on 0330 024 0888 or email enquiry@larking-gowen.co.uk. You can also find contact details on the Our People section of the website.

Megan Howard