April Bulletin 2025
Welcome to our April Bulletin
As we move into the new financial year, there's plenty to keep an eye on. The Bank of England recently held interest rates at 4.5%, a widely expected decision amidst ongoing economic uncertainty. While volatility remains, the outlook suggests that interest rates are on a gradually declining path, offering a cautiously optimistic view for the months ahead.
In this edition, we cover key updates affecting businesses and individuals from changes to the National Minimum Wage to important developments in Making Tax Digital (MTD) and electric vehicle taxation.
As always, we're here to support you through the changes and help you plan with confidence.
This month's ABMV tax bulletin will cover:
Employers’ National Insurance Change
Changes to National Minimum Wage
Changes to the taxation of non-UK domiciled individuals
Stamp Duty Changes from April
Making Tax Digital (MTD)
HMRC and Companies House to scrap free filing services
Road Tax Changes for Electric Vehicles
HMRC to use voice recognition to speed up calls
Massive congratulations to Eddie
Employer National Insurance Changes from 6th April 2025
NIC Rate Increase: Class 1, 1A, and 1B rates rise from 13.8% to 15%.
Lower NIC Threshold: Employers pay NICs from £5,000 (down from £9,100) annually. (Fixed until April 2028, then CPI-adjusted)
Higher Employment Allowance: Increased from £5,000 to £10,500, with the £100,000 eligibility cap removed.
Impact on Businesses: ~865,000 employers expected to pay no NICs due to the allowance increase.
If you use payroll software, these updates should be automatically applied.
If you have any questions or need help reviewing your payroll processes, please don’t hesitate to contact us.
National Minimum Wage Increases from April 2025
Legislation confirming the new National Living Wage and Minimum Wage rates has now been laid before Parliament and is set to take effect from 1 April 2025. Despite concerns from businesses, no changes to the planned increases are expected.
Key updates:
National Living Wage rises to £12.21 per hour (a 6.7% increase), worth an extra £1,400 per year for a full-time worker.
National Minimum Wage (18-20 year olds) increases to £10.00 per hour, adding up to £2,500 per year for eligible full-time workers.
An impact assessment suggests these changes will put £1.8 billion into workers’ pockets over the next six years. While this benefits employees, businesses may face rising costs.
If you need help assessing the impact on your payroll and planning for these changes, get in touch with the payroll team.
Changes to the taxation of non-UK domiciled individuals from 6 April
From 6 April 2025, the current remittance basis regime will be replaced with a new residence-based test. The new regime will be available for four years starting from 6 April 2025 or the first tax year in which the individual becomes a UK resident, if later. It will be available to any individuals who have been non-UK resident for at least the previous ten tax years.
Stamp Duty Changes from April 2025 – What You Need to Know
The current extra stamp duty relief for first-time buyers and home movers in England and Northern Ireland will end on 31 March 2025. From 1 April 2025:
First-time buyers will see the stamp duty threshold drop from £425,000 to £300,000.
Home movers will start paying stamp duty on purchases over £125,000, down from the current £250,000.
For example, a home mover buying a £500,000 property after the change would pay £15,000 in stamp duty, compared to £12,500 under the current rules.
If you’re planning a property purchase, it may be worth considering the timing. Get in touch if you’d like advice on the potential impact.
Making Tax Digital (MTD)
HMRC sending Letters to Landlords and Sole Traders starting April 2025
These letters will initially go to landlords, sole traders, and self-employed individuals with annual income over £50,000, based on their 2023/24 Self-Assessment returns.
From 6 April 2026, anyone earning above this threshold will be required to keep digital records and submit quarterly income reports under the new MTD rules.
This is the first time HMRC is directly writing to individuals about the upcoming changes. If you fall into this category, now is the time to start preparing your systems and processes for the transition.
If you have any questions about how MTD will impact you, or if you'd like help getting ready, please get in touch with our team. We are here to support you every step of the way.
ABMV is fully prepared for this transition and ready to guide our clients every step of the way.
HMRC and Companies House to scrap free filing services
From April 2026, companies won’t be able to file their tax returns and accounts using the HMRC and Companies House free-to-use service.
From 1 April 2026, you will need to use commercial software to file annual accounts and Company Tax returns with HMRC. Companies that are affected by the withdrawal of services will be allowed to submit accounts to CH on paper but will need to purchase software to file their CT return. Get in touch if you would like help from the team at ABMV.
Road Tax Changes for Electric Vehicles from April 2025
From 1 April 2025, the road tax exemption for electric vehicles (EVs) will come to an end. All EV owners, including those using electric vans for commercial purposes, will be required to pay the standard rate of Vehicle Excise Duty (VED).
In addition:
New EVs registered after April 2025 will be subject to a first-year VED rate of £10.
If the vehicle’s list price exceeds £40,000, an Expensive Car Supplement of £410 per year will also apply, for five years.
We recommend factoring these changes into your business planning and vehicle purchasing decisions. If you’d like to discuss how this might impact your tax position or fleet strategy, please get in touch with us.
HMRC to use voice recognition to speed up calls
The UK tax authority has been heavily criticised for its failure to answer tens of thousands of calls, and for long delays on phone lines.
Callers to HM Revenue and Customs (HMRC) will be able to use their voice as a password in a bid to speed up calls, a government minister has announced.
Massive congratulations
Massive congratulations to Eddie on officially completing and passing his final AAT exams!
We’re beyond proud to share that Eddie Neame is now a fully qualified AAT Accountant. His dedication, determination, and hard work have truly paid off, and we couldn’t be more thrilled to see him reach this milestone.
Introducing the ABMV Customer Portal: secure access anytime, anywhere
At ABMV, we are committed to delivering added value to our customers. As part of this commitment, we are excited to introduce our new customer portal.
This powerful resource gives you 24/7 online access, allowing us to securely store, manage, and share confidential documents with you. With the portal, you can access your files anytime, from anywhere, with complete peace of mind.
If you have any questions or would like to learn more about how we can help you with your accounting and business advisory needs, please don’t hesitate to contact us. Our team of experts is always ready to assist you with any queries you may have.
