March 2025 Newsletter
Posted on 10th March 2025
Keeping You Ahead: Key Accounting Updates for March 2025
At Bidwell Accountancy Limited, weโre dedicated to keeping our clients informed and ahead of any financial changes. This month, we cover essential updates on tax deadlines, new HMRC regulations, and key financial planning strategies to help you stay tax-efficient.
๐ข HMRC Changes to Employee Benefits Reporting from April 2026
HMRC has announced that from April 2026, Benefits in Kind (BIK) will become mandatory on payroll. This means all taxable benefits provided to employeesโsuch as company cars, private medical insurance, and gym membershipsโwill need to be reported through payroll rather than via a P11D form. Businesses should start preparing now to ensure compliance with the new system.
๐ก How to Prepare:
Review any current benefits provided to employees.
Ensure your payroll system is capable of handling benefit-in-kind reporting.
Seek advice on minimising tax liability related to employee benefits.
If you need help navigating this change, our team is here to assist.
๐ผ Self-Employed? Major Changes to Profit Reporting from April 2025
Self-employed individuals and partnerships will be required to report profits on a tax-year basis from 6 April 2025. This means that businesses that previously used non-standard accounting periods will now need to align with the tax year (6 April โ 5 April).
๐ Key Impacts:
Transitional rules apply in 2024/2025, which could result in additional taxable profits.
Overlap profits from previous years may be utilised to offset taxable amounts.
Planning ahead can help reduce unexpected tax burdens.
Contact us to discuss how these changes might affect your tax position and what planning options are available.
๐ Spring Budget 2025 โ What to Expect
The Spring Budget is expected to be announced in March 2025 by the Labour Government. While full details are yet to be confirmed, key areas of focus could include:
โ
Changes to corporation tax rates
โ
Further reforms to Capital Gains Tax
โ
Support for small businesses and self-employed individuals
โ
Adjustments to VAT thresholds
โ
Updates on Making Tax Digital (MTD) expansion
Stay tuned for our post-budget analysis to see how these changes will impact you and your business.
๐ Top Financial Planning Tips for March 2025
๐ผ Utilise Annual Allowances โ Ensure youโre maximising your tax-free allowances before 5 April 2025, including ISA contributions, pension relief, and capital gains exemptions.
๐ท Prepare for Dividend Tax Changes โ Any planned dividend payments should be reviewed in light of potential tax changes.
๐ก Property Owners โ Plan for CGT โ If you're selling property, consider timing the sale to take advantage of the current Capital Gains Tax allowances.
๐ Keep Your Records Up to Date โ Accurate record-keeping is key for tax efficiency and compliance. If you need help with bookkeeping, we offer cloud accounting solutions such as Xero and Dext to streamline your finances.
๐จ Important Tax Deadlines & Updates
๐น 31 March 2025 โ Corporation Tax Payment Deadline for companies with a 31 March 2024 year-end. Ensure you have made your payments to avoid penalties.
๐น 5 April 2025 โ End of the 2024/2025 Tax Year. Now is the time to maximise tax reliefs, including ISA contributions, pension top-ups, and capital gains planning.
๐น 6 April 2025 โ New Tax Year Begins (2025/2026). Review any changes in tax rates, allowances, or thresholds that could affect your financial planning.
๐น VAT Returns Due โ If your business submits VAT returns quarterly, check your submission deadlines to avoid fines
๐ Get in Touch โ Letโs Keep You Tax Efficient!
At Bidwell Accountancy Limited, weโre here to make tax and financial planning stress-free for you. If youโd like personalised advice or assistance with any of the above updates, reach out to us today.
๐ง Email us at info@bidwellaccountancy.com
๐ Call us on (01908) 380391
๐ Visit our website www.bidwellaccountancy.com
We look forward to helping you achieve financial success in 2025! ๐
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