June 2025 Newsletter

Posted on 10th June 2025

As summer arrives, we bring you this month’s key financial and tax updates to help you plan ahead with confidence. Whether you’re a sole trader, business owner, landlord, or employee, our expert insights will keep you one step ahead of deadlines, legislation changes, and HMRC updates.

From inheritance tax reforms to self-assessment planning tips, and the approaching Making Tax Digital deadline—here’s everything you need to know this month.

✅ CEST Tool Gets a Makeover: Determining Employment Status

From 30 April 2025, HMRC's Check Employment Status for Tax (CEST) tool has been revamped with clearer questions and guidance to make determining employment status easier and more reliable.

Whether you’re a contractor, engaging subcontractors, or using temporary staff, the new CEST tool helps assess if a worker should be treated as self-employed or employed for tax purposes—crucial for IR35 compliance. HMRC will stand by the outcome provided the tool is used accurately and honestly.

Who should use CEST?

Sole traders and contractors

Companies hiring freelancers

Recruitment agencies

If your business regularly engages outside help, this tool could save you from costly penalties. Not sure how to interpret the results? Talk to our team—we’ll guide you through it.

📆 Why Filing Your Tax Return Early Is Smart

Beat the January rush—filing your 2024/25 self-assessment tax return now can:

Help you budget early by knowing your tax bill in advance

Secure a faster tax refund if you’ve overpaid

Free up your accountant’s time to maximise reliefs and spot opportunities

The 31 January 2026 deadline may seem far away, but planning now can make all the difference. Need help pulling together your figures? Let us take the stress away—get in touch.

👶 Save up to £2,000 a Year with Tax-Free Childcare

Got children starting school in September 2025? You could save up to £2,000 per child per year through the Tax-Free Childcare scheme—or £4,000 if your child has a disability.

How it works: For every £8 you deposit, the government adds £2—up to £500 per quarter per child.

Eligible for:

Self-employed individuals

Those earning the National Minimum or Living Wage

Parents on maternity/paternity leave

Planning ahead for childcare costs over summer or term time? Let us help you check your eligibility and get set up.

💻 MTD for Income Tax Is Coming: Act Now

Making Tax Digital for Income Tax (MTD for IT) becomes mandatory from 6 April 2026 for sole traders and landlords earning over £50,000.

What’s required?

Digital bookkeeping using HMRC-approved software

Quarterly updates to HMRC

End-of-year digital submissions

Additional income brackets will follow in 2027 and 2028, so early adoption is strongly advised. We’re helping clients move to cloud-based systems now, with minimal disruption. Ask us how we can help you prepare.

💼 Running Multiple Businesses? Here’s What HMRC Says

Have more than one self-employed activity? Whether it’s treated as one trade or multiple depends on how related they are in practice—not just what you prefer.

Three possible treatments:

Separate Trades: Distinct activities with different customers

New Single Trade: One business morphs significantly into another

Continuation of Trade: Same trade with a new revenue stream

We’ll help you determine the correct structure to ensure your profits are taxed correctly—and avoid unexpected liabilities.

🌿 Inheritance Tax Relief Expands from April 2025

Great news for landowners: from April 2025, Agricultural Property Relief (APR) now includes land under approved environmental schemes. This means you can protect your estate from IHT even if your land is used for conservation, not farming.

But from April 2026, a £1 million cap will apply across combined APR and Business Property Relief claims, so advanced planning is key.

Let’s review your estate strategy before the rules tighten.

🧾 Don’t Miss the Class 1A NIC Deadline

If you provide benefits like private healthcare or company cars, Class 1A National Insurance is due:

By post: 19 July 2025

Electronically: 22 July 2025

You must also file P11D and P11D(b) by 6 July 2025. These forms detail employee benefits provided in the 2024/25 tax year. Need help with reporting or calculations? Our payroll team is ready.