Key tax dates in April for SMEs

1 January may spell the start of a new year for many, but for accountants and business owners, 6 April marks the real new beginning. If, like many business owners right now, you’re wondering what this new year will bring for taxes, read on. We’re sharing what taxes looked like in the UK in 2024, which taxes are changing in April 2025, and what you can do if you’re hit by a surprise tax bill. 

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Understanding the last year in taxes 

Before we dust off the receipts and crack open a fresh notebook (or rather, subscribe to another year of Quickbooks or Xero), let’s start by looking back. What did 2024 look like? 

For starters, HMRC collected £93.3 billion in corporation tax for March 2024, a 10% increase on the previous year. Much of this could be down to the increase in corporation tax rates for businesses turning over more than £50,000 in profit – the increase changed the rate from 19% to 25%. Some sources claim the increase should have led to a 30% bump in corporation tax payments, and the fact that it only rose by 10% would actually suggest a fall in profits. 

VAT receipts came in at £169 billion for the year covering 2023 to 2024, which is a 6% increase on the previous period. Meanwhile, for the same period (23/24), the government raised a total of £1.1 trillion across tax sources, including income tax. This represented approximately 40% of the total UK GDP. 

Capital Gains Tax rate increase 

Now, for 2025. The big news is that Capital Gains Tax is increasing. Currently, there are two main rates you would pay, 10% and 20%. These will be increasing to 18% and 24% respectively. That means that if you want to sell an investment, you may need to pay more tax. Speak to HMRC, an accountant, or a financial advisor to get an accurate view of what your exposure will truly look like if you are considering selling an investment on. 

Business Asset Disposal Relief rate increase 

BADR will also be increasing in cost. The Business Asset Disposal Relief enables business owners and entrepreneurs to potentially pay less Capital Gains Tax when they sell a business. The BADR tax rate will be increasing from 10% to 14% in April 2025. It will then increase further to 18% next year in April 2026. 

Payroll reporting deadline 

The payroll reporting deadline for 2025 is 19 April. Ensure all employees have been given their P60s, that your FPS is in on time, and if you will not be paying anyone in 25/26, ensure you send in an EPS that reflects that so HMRC are aware. 

Employer National Insurance 

The Employer National Insurance rate is rising from 13.8% to 15% as of 6 April 2025. In a similar vein, the threshold at which Employer Class 1 National Insurance becomes payable is being lowered from £9,100 per year to £5,000 per year. This could mean your Employer NI exposure will be higher in 2025, so consider speaking to a tax advisor or accountant to ensure you are aware of what needs to be factored into your budgets. 

National Insurance Employment Allowance 

The maximum Employment Allowance is increasing from £5,000 to £10,500. This increase could help reduce your total NI liability, possibly saving you £5,500 a year. However, this possible saving does need to be considered in light of the increased Employer NI rate and lowered threshold, which, depending on how many people you hire, could have an impact on the amount you owe. Consider creating a budget and calculating your exposure in the coming months, so you’re not surprised when bills begin to appear, and so that you can begin saving to cover your tax bills now. 

Minimum wage increase 

As of 1 April 2025, minimum wage is going up from £11.44 per hour to £12.21 an hour. It’s essential that you confirm all your employees aged over 21 are on this new hourly rate at a minimum moving forward. 

New funding 

The new tax year can also spell a restart to certain pools of funding, tax relief options, and business grants for SMEs in the UK. Consider speaking to a financial advisor, tax advisor, or a business broker to find out if there’s any new funding you can capitalise on. Keep an eye on government portals of communication to ensure you hear of any updates surrounding government-backed loans (like the Growth Guarantee Scheme), R&D tax credits, and other sources of financial support. 

Spring statement from the Chancellor 

The 2024 Autumn budget announced an estimated £40 billion in tax increases. Many of those increases are being implemented in April 2025. A few days before implementation, on 26 March 2025, we’re expecting another scheduled budget from the Chancellor – keep your ears open then to find out if there’ll be any further changes. 

Need finance to help you pay a tax bill? 

Have you found yourself confronted with a surprise tax bill this April? Or perhaps you’re concerned about what the upcoming changes mean for future bills. If so, you have a few options. 

The first is to contact HMRC and ask if they are happy for you to pay in instalments. While this is not always an option, they do sometimes offer instalment based payments. 

The other option is to use a business loan to help you spread or delay the cost of your tax bill. There are several options when it comes to tax loans. One option is a secured business loan, which is suitable if the bill is large and you have an asset that you’re happy to use as collateral for the debt. Another option is a short-term business loan, which is helpful if you’re happy to pay the bill soon, but just need a few more months to gather together the funds. You could also use invoice finance – this would be helpful if you have the money coming in soon, but are waiting for a client to pay the funds, and if you continue to wait, you would likely miss HMRC’s payment deadline. 

If you’d like to find out if you’re eligible for a business loan, and if so, how much you could expect to gain, just click the link below and submit your information. We can tell you your options and confirm if you’re eligible or not without impacting your credit score. 

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Please note that the information above is not intended to be financial advice. You should seek independent financial advice before making any decisions about your financial future.

It’s important to remember that all loans and credit agreements come with risks. These risks include non-payment and late-payment of the agreed repayment plan, which could affect your business credit score and impact your ability to find future funding. Always read the terms and conditions of every loan or credit agreement before you proceed. Contact us for support if you ever face difficulties making your repayments.

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