Presenting her first Budget on 30 October 2024, Chancellor Rachel Reeves was faced with the difficult task of keeping Labour's manifesto promise not to raise income tax, national insurance contributions (NICs) or VAT for 'working people' while trying to plug the '£22 billion black hole' she had identified in the weeks after the July 2024 general election. In the event, it is employers who will bear the brunt of tax rises, with an increase of 1.2% to the rate of employer NICs from 6 April 2025 coupled with a reduction from £9,100 to £5,000 in the threshold at which employer NICs start to be payable. This will impact on all businesses that employ people, although the rise in the Employment Allowance will offset the increased employer NICs for many smaller businesses.
The personal allowance remains at £12,570 until 2027/28 and the higher rate threshold will stay at £50,270 – the levels that first took effect in 2021/22. With inflation at 2.6% (November 2024) and more pertinently annual earnings growth at 5.2%, these measures will result in increased taxation for many.
Making the most of tax reliefs and allowances while they are still available remains crucial.
Our guide to Year End Tax Planning 2024/25 helps you to maximise your allowances and reliefs to reduce your tax bill. The guide offers practical, concise steps you can take across key issues, such as:
- income tax saving opportunities
- planning for directors and employees
- pension tax planning
- capital gains tax planning
- self-employment
- individual savings accounts
- inheritance tax planning
- charitable giving
To download the Year-End Tax Planning Guide 2024/25, please complete the form below:
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We hope our guide gives you some ideas for how to make the most of your finances for the end of the tax year.
If you would like to discuss any of the issues raised, please do not hesitate to get in touch: Contact Us