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As we move into May, we’re bringing you key updates that matter most to business owners, families, and individuals preparing for the year ahead. From increased interest charges on late tax payments to generous new tax reliefs and compliance changes, there’s a lot happening across the financial landscape.
In this edition:
✅ Important tax deadlines
📈 Higher HMRC interest rates from April
🧪 £13.9bn government investment in R&D
👨👩👧👦 Increases to Child Benefit
💰 Enhanced pension tax relief explained
💻 Less than a year until Making Tax Digital for Income Tax begins
Whether you’re a landlord, company director, or just looking to maximise your tax efficiency, we’ve got insights to help you stay ahead.
💸 HMRC Interest Rates to Rise from April 2025
From 6 April, HMRC increased the late payment interest rate by 1.5%, bringing it to Base Rate + 4.00%. This change applies across most taxes and is designed to encourage timely tax payments.
Repayment interest (what HMRC pays you on overpayments) remains unchanged at Base Rate minus 1%, with a floor of 0.5%.
📌 What this means: Late payments are now more costly—getting your returns and payments in on time is more important than ever.
🔬 £13.9 Billion in UK R&D Investment
The government is doubling down on innovation, with a record £13.9bn pledged to research and development.
Highlights include:
£8.8bn for UK Research and Innovation (UKRI)
Funding for early dementia detection via advanced blood tests
£86m for a wind turbine test site in Blyth, supporting clean energy growth
💼 If your business invests in innovation, you may be eligible for R&D tax reliefs. We’ll help you navigate the claims process to ensure you don’t miss out.
👶 Child Benefit: Higher Payments and PAYE Update
From April 2025:
Eldest/only child: £26.05 per week
Additional children: £17.25 per week
Reminder: Child Benefit ends on 31 August following a child’s 16th birthday, unless they stay in approved education or training. Parents must notify HMRC to continue receiving payments.
New for Summer 2025:
📎 Families affected by the High Income Child Benefit Charge (HICBC) can opt to have the charge collected via PAYE, removing the need for a self-assessment tax return.
📈 Make the Most of Pension Tax Relief
Pension contributions remain one of the most efficient ways to reduce your tax bill.
Here’s what you could be claiming:
20% relief for basic rate taxpayers
40% for higher-rate taxpayers
45% for additional-rate taxpayers
And remember:
Annual allowance: £60,000
Carry forward: Use unused allowance from previous 3 years
No lifetime cap: As of April 2023, there’s no longer a limit on total contributions
Let’s review your pension strategy and make sure you're getting the full benefit.
📲 MTD for Income Tax – Less Than 1 Year to Go
From April 2026, Making Tax Digital (MTD) for Income Tax becomes mandatory for self-employed individuals and landlords earning over £50,000.
What you’ll need to do:
Keep digital records
Submit quarterly updates to HMRC
Get familiar with a new penalty system for late returns
📆 Future Phases:
April 2027: £30k–£50k income
April 2028: £20k+ income
📣 HMRC is already contacting those whose income is nearing the threshold. If you haven’t heard yet, you will soon. We can help you get MTD-ready now.
🗓 Tax Deadlines: May & June 2025
1 May – Corporation tax due for companies with year-end 31 July 2024
19 May – PAYE & NIC for month ended 5 May (22 May if paying electronically)
31 May – Final day to provide P60s to all employees for 2024/25
1 June – Corporation tax due for companies with year-end 31 August 2024
19 June – PAYE, NIC & CIS300 filing/payment deadlines for month ended 5 June
Staying on top of deadlines helps you avoid penalties and keeps your business compliant. Need a reminder system? We can help set one up.
📞 Get in Touch – Let’s Keep You Tax Efficient!
If any of these changes affect you or your business, we’re here to support you every step of the way. Whether it’s strategic tax planning, R&D relief, or getting prepared for Making Tax Digital, our expert team is just a call or click away.
📧 Email us at info@bidwellaccountancy.com
📞 Call us on (01908) 380391
🌐 Visit our website www.bidwellaccountancy.com
Let’s take your tax and business planning to the next level—together.
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