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📰 Tax Brief – June 2025

🔹 MTD for Income Tax – Delayed but Still Coming

HMRC has confirmed that Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) will begin from April 2026 for self-employed individuals and landlords earning over £50,000. Those earning between £30,000 and £50,000 will join from April 2027. Now is a great time to start preparing for quarterly digital submissions.

🔹 Dividend Tax Changes on the Horizon

Although no changes have been announced yet, it’s widely expected that the next Budget may further reduce the dividend allowance, currently set at £500 for 2025/26. Shareholder-directors should consider their remuneration strategy before the Autumn Statement.

🔹 High-Income Child Benefit Charge Threshold Increased

From April 2025, the High-Income Child Benefit Charge threshold has been increased to £60,000, with the charge tapering up to £80,000. Families previously affected should review their entitlement – claims can be reinstated if withdrawn.

🔹 VAT Registration Threshold Rises

The VAT registration threshold increased to £90,000 from 1 April 2025. If your turnover is below this level, you may wish to review whether voluntary deregistration makes sense for your business.

🔹 P11D Deadline Reminder

Employers must submit P11D forms for benefits in kind by 6 July 2025 and pay any Class 1A NICs by 22 July (19 July if by post). Consider switching to payrolling benefits from next year to simplify reporting.