Author: Glenn

From April 2025, updated ATED rates apply to residential properties held by companies and other Non-Natural Persons (NNPs). Make sure returns and payments are submitted by 30 April to avoid penalties. Reliefs may apply for commercial use.

The Annual Tax on Enveloped Dwellings (ATED) applies to NNPs who own interests in residential properties valued over £500,000. These provisions specifically affect entities such as companies, partnerships with company members, and managers of collective investment schemes, which are all classified as NNPs under the legislation.

Individuals who own property directly (rather than through a company) are not subject to ATED or ATED-related Capital Gains Tax (CGT). Furthermore, certain reliefs may be available if the property is used for commercial purposes.

Since 1 April 2025, ATED is charged based on the following property value bands:

For properties that were subject to ATED on 1 April 2025, both the return and payment must be submitted by 30 April 2025, covering the ATED period from 1 April 2025 to 31 March 2026. If a property is acquired after 1 April and falls within the scope of ATED, payment is due within 30 days of acquisition.

Penalties may be imposed for late filing, late payments, or inaccurate returns. Taxpayers have 30 days to appeal HMRC decisions, including penalties or determinations, by providing the grounds for the appeal.

Do you know what your 2025–26 tax code means? It affects how much tax is taken from your pay or pension. Check now to make sure you're on the right code and not overpaying! Here's what the letters and numbers really mean.

You can find your tax code:

• by checking your tax code for the current year online – you’ll need to sign in to or create an online account
• on the HMRC app
• on your payslip
• on a ‘Tax Code Notice’ letter from HMRC if you get one

The tax codes are updated annually. The basic personal allowance for the 2025-26 tax year is £12,570. The corresponding tax code for an employee entitled to the standard tax-free Personal Allowance 1257L. This is the most common tax code and is used for most people with one job and no untaxed income, unpaid tax or taxable benefits (for example a company car).

There are a lot of other numbers and letters that can appear in your tax code. For example, there are letters that show where an employee is claiming the marriage allowance (M) or where their income or pension is taxed using the Scottish rates (S). If your tax code numbers are changed this usually means your personal allowance has been reduced.

There are also emergency tax codes (W1 or M1) which can be used if a new employee doesn’t have a P45. These codes mean that an employee’s tax calculation is based only on what they are paid in the current pay period.

If your tax code has a 'K' at the beginning this means that deductions due for company benefits, state pension or tax owed from previous years are greater than your personal allowance. However, the tax deduction for each pay period can’t be more than half your pre-tax pay or pension.

It is important to check your 2025-26 tax code to ensure the correct information is being used. 
 

Child Benefit has risen for 2025–26: £26.05 for eldest, £17.25 for others. Claim continues to age 20 in approved education. HICBC still applies for incomes over £60K – but PAYE option coming this summer!

The child benefit rates for the only or eldest child in a family increased to £26.05 (from £25.60) for the 2025-26 tax year and the weekly rate for all other children to £17.25 (from £16.95). Child Benefit is usually paid every 4 weeks and will automatically be paid into a bank account. There is no limit to how many children parents can claim for.

Taxpayers entitled to the child benefit should be aware that HMRC usually stop paying child benefit on the 31 August following a child’s 16th Birthday. Under qualifying circumstances, the child benefit payment can continue until a child reaches their 20th birthday if they stay in approved education or training. A qualifying young person is someone aged 16,17, 18 or 19 in full time non-advanced education or in approved training.

Any parents with children that remain in approved education or training should contact the child benefit office to ensure they continue receiving the child benefit payments to which they are entitled. No child benefit is payable after a young person reaches the age of 20 years.

Child benefit is usually payable for children who come to the UK. However, there are a number of rules which must be met in order to claim. HMRC must be notified without delay if a child receiving child benefit moves permanently abroad.

The High Income Child Benefit Charge (HICBC) currently applies to taxpayers whose income exceeds £60,000 in a tax year and who are in receipt of child benefit. The HICBC is charged at the rate of 1% of the full child benefit award for each £200 of income between £60,000 and £80,000. For taxpayers with income above £80,000 the amount of the charge will equal the amount of child benefit received.

The HICBC therefore either reduces or removes the financial benefit of receiving child benefit. It was announced as part of the Spring Statement measures that from this summer, families will have the option to report their Child Benefit payments and pay the HICBC directly through their PAYE tax code instead of filing a self-assessment tax return.

1 May 2025 – Due date for corporation tax due for the year ended 30 July 2024.

19 May 2025 – PAYE and NIC deductions due for month ended 5 May 2025. (If you pay your tax electronically the due date is 22 May 2025).

19 May 2025 – Filing deadline for the CIS300 monthly return for the month ended 5 May 2025.

19 May 2025 – CIS tax deducted for the month ended 5 May 2025 is payable by today.

31 May 2025 – Ensure all employees have been given their P60s for the 2024/25 tax year.

1 June 2025 – Due date for corporation tax due for the year ended 31 August 2024.

19 June 2025 – PAYE and NIC deductions due for month ended 5 June 2025. (If you pay your tax electronically the due date is 22 June 2025).

19 June 2025 – Filing deadline for the CIS300 monthly return for the month ended 5 June 2025.

19 June 2025 – CIS tax deducted for the month ended 5 June 2025 is payable by today.

Gross profit is one of the clearest indicators of how well your business is performing. It’s the amount left after deducting the cost of goods sold (COGS) from your sales revenue. Managing your gross profit returns well is crucial because it directly affects your bottom line and helps you understand whether you’re pricing correctly, controlling costs, and making enough to cover your overheads.

What Exactly Is Gross Profit?

Let’s start with the basics. Gross profit = Sales – Cost of Goods Sold. It doesn’t include things like rent, wages (unless they’re directly related to producing the goods), marketing, or admin costs. This figure tells you how much you’re making on the actual product or service before general running costs are factored in.

A healthy gross profit gives you the buffer to pay your bills, reinvest, or take a wage. Poor gross profit might mean your pricing is too low, your suppliers are charging too much, or your operations aren’t efficient.

Why It Matters

Many businesses keep an eye on sales and bank balances, but gross profit tells a deeper story. You might be selling a lot, but if your margins are tight, you could still be in financial trouble. Regularly checking your gross profit margin (usually shown as a percentage) gives you early warning signs if things start slipping.

Improving Gross Profit

There are several ways to manage and improve your gross profit returns:

• Review Pricing: Are your prices competitive and profitable? Don’t undersell your value.
• Reduce COGS: Negotiate with suppliers, buy in bulk where sensible, or streamline production.
• Control Waste: In retail or food businesses, waste is a silent profit killer. Keep a close eye on stock control.
• Focus on Bestsellers: Promote your highest-margin products or services more heavily.

Regular Monitoring Is Key

You should be reviewing gross profit monthly at least. Use accounting software or simple spreadsheets to track changes and spot trends. If you see margins slipping, act quickly. The sooner you fix it, the better your long-term prospects.