May Bulletin 2025
Welcome to our May Bulletin
As we step into the warmer months, there's a renewed sense of optimism in the air, reflected not only in the weather but in the UK economy itself. The first quarter brought stronger-than-expected growth, with GDP rising by 0.7%, offering a welcome boost to business confidence across sectors.
In another notable shift, the Bank of England has implemented its fourth base rate cut in just a year, the fastest pace since the 2008-09 financial crisis. These changes continue to shape a mixed outlook for the financial landscape, presenting both opportunities and challenges. Highlighting our role as accountants is a crucial as ever. As always, we are here to guide you through these changes and help you plan with clarity and confidence.
This month's ABMV tax bulletin will cover:
P11D - Are you ready to report by 6 July?
Self-Assessment Thresholds to Rise for Certain Taxpayers
Act Now: Extend Child Benefit by 31 August
Supporting you through the Making Tax Digital (MTD) for income tax transition
Mandatory Payrolling of Benefits Delayed to April 2027
Government announces changes to funding for Level 7 apprenticeships.
In construction? You need to know about CIS
You create …We calculate
Tonbridge Business Awards 2025
ABMV staff take on the ‘Walk Tonbridge’ marathon
P11D - Are you ready to report by 6 July?
The deadline for filing the P11D forms to report benefits in kind in respect of directors and employees for 2024/25 is 6th July 2025, with any NI Payments due for payment to HMRC by 22nd July 2025.
Benefits in Kind (BIK) cover several different perks or additional employer payments to their employees. They can include any of the following:
Private Healthcare
Mobile Phones for personal use
Loans
Company cars
Gym memberships
And much more.
It is the employer’s responsibility to confirm that all above-mentioned taxable benefits are on a P11D form and submitted annually to HM Revenue & Customs (HMRC).
Self-Assessment Thresholds to Rise for Certain Taxpayers
The government has confirmed changes to the income thresholds at which individuals are required to submit a Self-Assessment tax return. These updates aim to reduce the number of low-income taxpayers needing to register unnecessarily.
Key changes:
Self-employed individuals: The threshold for needing to register for Self Assessment will rise from £1,000 to £3,000 in gross trading income by the end of the 2028/29 tax year.
Property income: The profit threshold for triggering a tax return will increase from £2,500 to £3,000. However, the gross rental income threshold remains unchanged at £10,000.
Other taxable income (e.g., savings, investments, casual earnings):
The threshold for Self Assessment will rise from £2,500 to £3,000.
Important to note:
These changes affect reporting obligations only — individuals may still have an income tax liability, even if they don’t meet the new thresholds for filing a return.
To address this, HMRC plans to launch a simple online system for collecting small amounts of tax without the need for a full tax return. More details are expected later in the year.
Act Now: Extend Child Benefit by 31 August
Parents of 16–19-year-olds in full-time education or training must update their Child Benefit claim by 31 August to keep payments going. Without this, benefits could stop following a child's 16th birthday.
Why it matters:
Child Benefit is worth up to £1,354.60 per year for the first child and £897 for each additional one. Payments don’t renew automatically once your child turns 16.
What to do:
Update your claim online or via the HMRC app — no need to wait for a letter. HMRC is also sending reminder letters with QR codes between May and July.
Approved education/training includes:
A-levels, NVQs (up to level 3), home education, and certain unpaid training (but not courses tied to a job).
For employers:
You may want to share this reminder with staff. Also note: from this summer, affected families can now pay the High-Income Child Benefit Charge via PAYE, potentially cutting Self Assessment admin. Watch for updated tax codes.
Supporting you through the MTD for Income Tax Transition
Making Tax Digital (MTD) for income tax will affect businesses and individuals in different ways — for some, it may require only minor changes, while others may need to overhaul parts of their current processes.
Whether you need advice on choosing the right software, setting up digital record-keeping, or simply understanding what’s changing, we’re here to help.
If you'd like to discuss how MTD may impact you and your business and how to prepare effectively, please don’t hesitate to get in touch.
Mandatory Payrolling of Benefits Delayed to April 2027
The government has announced a 12-month delay to the start of mandatory payrolling for benefits in kind and taxable employment expenses — the new implementation date is now April 2027 (previously April 2026).
A technical note has been published outlining how the system is expected to work. While the core details are helpful for early planning, key policy decisions won’t be finalised until draft legislation and guidance are released, not expected before Autumn 2025.
Employers, accountants, and software providers now have additional time to prepare, and HMRC is inviting feedback on the current proposals to help shape the final policy.
We’ll keep you updated as more information becomes available.
Government announces changes to funding for Level 7 apprenticeships
From 1 January 2026, apprenticeship levy funding for Level 7 qualifications (equivalent to master’s level) will be restricted to apprentices aged 16–21.Exceptions apply for:
Care leavers, and
Those with an Education, Health and Care Plan (EHCP)
These individuals will continue to receive funding up to age 25 at the start of their apprenticeship in England.
This change does not impact Level 4 apprenticeship funding.
Reminder -The apprenticeship levy applies to employers with an annual pay bill over £3 million, and is charged at 0.5% of the total payroll.
In construction? You need to know about CIS
The Construction Industry Scheme (CIS) helps HMRC manage tax in the building trade.
Contractors – You must register & deduct tax from subcontractors’ pay
Subcontractors – Register to pay less tax & stay compliant
Confused? Don’t stress.
The team at ABMV will guide you through:
🔹 CIS registration
🔹 Tax returns
🔹 Refunds (yes, you might be owed money!)
Let ABMV handle the paperwork while you focus on the job site.
You create …We calculate
Calling all creatives — from models and stylists to podcasters and content creators. Your focus should be on your craft, not on chasing receipts or figuring out tax lingo.
We specialise in accounting for:
✔️ Freelancers & Influencers
✔️ Stylists & Photographers
✔️ Creative Entrepreneurs
✔️ Podcasters & Performers
Our services for you can include:
🔹 Self-Assessment Tax Returns
🔹 Expense Tracking & VAT
🔹 Company Setup & Advice
🔹 Monthly Support That Makes Sense
ABMV to sponsor the Small Business of the Year Award
On June 26th, the Tonbridge Business Awards by the TN card celebrate the very best of the
Tonbridge business community, honouring the
successes and achievements of the businesses and
business people who are doing great things for our town.
We are very proud to be an integral part of the awards by sponsoring the Small Business of the Year Award.
Wishing each and every finalist the very best of luck.
Charity News
On September 21st, team ABMV will be lacing up their walking shoes and joining others from across our local community for a meaningful challenge, a 26.2-mile marathon walk from Tonbridge Baptist Church to the Old Fire Station.
We’re proud to take part in this event, kindly supported by CooperBurnett Solicitors, to raise much-needed funds for Sustain, a Tonbridge-based food bank working hard to combat food poverty in our area.
Here’s hoping for sunny skies and plenty of smiles along the way!
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.
