HMRC has rolled out a fresh set of changes this tax year. Here’s your no-nonsense breakdown of what matters for individuals and business owners.
Every April brings a new tax year, and with it, updated thresholds, rates, and rules. Missing even one change can mean paying more than you should, or facing unexpected penalties. Here’s what’s moved for 2025/26.
Income Tax & National Insurance
Personal allowance remains frozen at £12,570 – the freeze continues through to 2028, which means more people are being dragged into higher tax bands as wages rise (fiscal drag).
Higher rate threshold stays at £50,270. If your salary is approaching this, consider pension contributions or salary sacrifice schemes to stay below it.
Employer National Insurance rises to 15% from April 2025, up from 13.8%. The Secondary Threshold also drops to £5,000, meaning more of each employee’s salary is subject to NI – a significant cost if you run a payroll.
Employment Allowance increases to £10,500 – welcome relief for small businesses with lower payroll costs. If you haven’t claimed this, speak to us.
Capital Gains Tax
CGT rates on investments have increased. Basic rate taxpayers now pay 18% (up from 10%), higher rate taxpayers pay 24% (up from 20%). Residential property remains at 18%/24%.
Annual CGT exempt amount stays at £3,000. This is dramatically lower than the £12,300 it was two years ago,a make full use of ISAs to shelter investment gains.
The Employer NI increase is one of the biggest cost changes for small business owners in years. If you employ even one person, now is the time to review your payroll structure, consider salary sacrifice pension arrangements, and ensure you're claiming the full Employment Allowance. Don't absorb a cost you can legitimately reduce.
Key Dates: 2025/26
Deadline | What It Is |
5 April 2025 | End of 2024/25 tax year — ISA & pension allowances reset |
6 April 2025 | New Employer NI rates take effect |
31 July 2025 | Second Self Assessment payment on account due |
5 October 2025 | Register for Self Assessment (if new) |
31 January 2026 | Self Assessment return & balancing payment due |