Last Updated on January 11, 2025 by admin
As the business landscape evolves for small businesses in the UK, understanding significant dates and regulations should be a priority. The year 2025 will mark the end of the financial year 2024/2025 and would welcome the fiscal year 2025/2026. Business owners must be aware of the changes in legislation that may affect their operations and deadlines for filings and returns.
This article will highlight key changes and dates that small businesses in the UK should not overlook in 2025.
An overview of the 2024/2025 financial year
A financial year is different from the regular calendar. Also known as a fiscal year, the financial year applies to sole traders, limited companies, partnerships, and employees. It doesn’t matter whether you have just incorporated your UK business or it has been in operation for a few years; every business has to consider the financial year to remain compliant.
The financial year 2024/2025 started on 6 April 2024 and will end on 5 April 2025. Now that 2024 has ended, below is a breakdown of the filing and reporting deadlines before the financial year ends.
January 2025
Those in partnerships, self-employment, or even directors or shareholders who might receive dividend income or claim business expenses must keep track of the self-assessment deadline of 31 January 2025.
On 31st January, all online filings, tax payments for the previous year, 2023/2024, and the first ‘payment on accounts‘ are due. This annual filing tells HM Revenue and Customs (HMRC) of the income you have received in the previous tax year.
The deadline for capital gains tax for sole traders and partnerships is 31 January. The tax applies when selling assets. The deadline for residential properties is 60 days after the completion date.
If you miss this deadline, HMRC will fine you £100 for delays of up to three months. For longer delays or late payments, additional charges and interest will accrue. These penalties can quickly add up, increasing the financial burden of your business.
April 2025
This is the end and the start of a new financial year. The month also marks changes to statutory pay rates or employer’s National Insurance (NI). On April 1st, there will be changes to statutory pay rates and employers’ NI. The NMW rate changes from 2025 are as follows:
- National Living Wage Rate (21 and over) – £12.21
- 18–20 Year-Old Rate – £10.00
- 16-17 Year-Old Rate – £7.55
- Apprentice Rate – £7.55
- Accommodation Offset £10.66
Employers’ NI contribution will increase from 13.8% to 15%. HMRC will lower the threshold at which employers are required to pay NI will be lowered from £9,100 to £5,000.
The deadline for registering payroll benefits with HMRC for the tax year 2024/2025 is 5 April. Payrolling a benefit means adding the taxable value of an employee’s benefit to their taxable pay during payroll.
2025/2026 tax year
The 2025/26 tax year begins on April 6. Changes in statutory parental, sick, and bereavement leave pay rates will take effect on this day. Statutory Sick Pay (SSP) for more than three days of sickness also rises from £116.75 to £118.75 per week for eligible workers.
The deadline for employers to submit their final Full Payment Summary (FPS) and Employer Payment Summary (EPS) to HMRC is 19 April.
May 2025
May is the month when local elections occur and the deadline for issuing P60. On 31st May, employers must issue P60s to all current employees for the 2024/25 tax year. A P60 shows the tax the employee paid on their salary in the tax year (6 April to 5 April).
July 2025
This month, there are reporting taxable benefits on July 6th, a few HMRC deadlines, such as taxable benefit reporting on 6th July for the 2023/24 tax year, paying NI on taxable benefit reporting on 22nd July, and a second payment on accounts due on 31st July.
October 2025
This month is the deadline for Self-Assessment registration and for partnerships to update any changes to HMRC. If you started your UK business in the tax year 2024/2025 and you did not register for Self-Assessment, October 5th is the deadline to apply to HMRC.
The 31st of October is the deadline for submitting the Self-Assessment return paper to HMRC.
August, September, November, and December have no critical reporting and filing dates. Things businesses should look out for in 2025 is the Spring Budget on March 26th and the Autumn Budget in October. The Spring budget is where the Chancellor updates the UK’s progress after the Autumn Budget. These updates could affect the operation of businesses in the UK, so entrepreneurs need to keep track of them.
What are the changes taking place in 2025?
- Alcohol duty rates for all draught products will decrease by 1.7% in cash terms from 1st February 2025.
- Introduction of new recycling legislation from 31 March 2025. All England-based businesses with 10 or more full-time employees will be legally obligated to separate their food waste from dry recyclables and general waste.
- The National Minimum Wage (NMW) rates rise from 1st April 2025.
- From 6th April, pay rates for statutory parental, sick, and bereavement leave will change. Employees on maternity, paternity, adoption, shared parental, or bereavement leave will receive £187.18 per week, up from £184.03.
Conclusion:
In conclusion, these dates are crucial for small business owners to keep track of. If a business misses important deadlines, HMRC may impose hefty fines and penalties, burdening its financial status. Remembering these dates will ensure your business operates smoothly and complies with UK legal regulations and requirements.
BusinAssist helps businesses with accounting obligations such as VAT returns, filing of confirmation statements, and annual accounts for limited companies in the UK. Our services ensure businesses stay compliant and avoid hefty fines and penalties.
For more information on essential dates small businesses need to keep track, contact us at [email protected].
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