What's Changing from 6 April? Key Tax Updates You Need to Know

Apr 7

3 min read

The new tax year is here, and with it comes a wave of tax changes that could impact your business, your personal finances, or both. From changes in National Insurance to capital gains and ISAs, here's a breakdown of the key updates you need to be aware of from 6 April.

National Insurance: Employers Pay More

Employers will now face a 1.2% increase in National Insurance contributions. For many businesses, that means an extra £800 per employee.

On top of that, the threshold for NI support has dropped from £9,100 to £5,000 making this hike even more significant for some employers.

Good News: Employment Allowance Doubled

There is a silver lining. The Employment Allowance has doubled to £10,500, which can help reduce your overall employer NI bill. Even better, more businesses now qualify, so it’s worth checking if you’re eligible.

Late Payment Costs Going Up

If you miss a payment deadline, it’ll cost you more than ever:

Late payment interest rises to 8.5%
Penalties are increasing from 4% to 10%

For VAT and Income Tax, the penalties now apply sooner and escalate faster:

15 days late = 3% penalty (was 2%)
30 days late = another 3% added (was 2%)
31+ days = full penalty now 10% (was 4%)

👉 Takeaway: Paying on time just became a lot more important.

Tax-Free Allowances Frozen (Again)

Your Personal Allowance remains at £12,570, and thresholds haven’t changed. This means as wages rise, more people may be pulled into higher tax bands.

Use Your ISA Allowance While Rates Are High

Interest rates are still high, so now’s a great time to make the most of your ISA allowance (£20,000 per year).

Here’s a reminder of the Personal Savings Allowance:

£1,000 for basic rate taxpayers
£500 for higher rate taxpayers
£0 for additional rate taxpayers

Any interest above these limits is taxable, unless it’s in an ISA. So, if you haven’t maxed out your allowance, now’s the time.

Capital Gains Tax on Business Sales Going Up

Selling your business or business assets? Big changes are coming to Business Asset

Disposal Relief (BADR):

From 6 April 2025, the CGT rate will rise from 10% to 14%
From 6 April 2026, it jumps again to 18%

Who’s affected?

Business owners selling all or part of their business
Shareholders in personal companies
Individuals disposing of qualifying business assets
Investors using Investors’ Relief

If you're thinking of selling, timing could make a big difference.

Furnished Holiday Lets Lose Tax Perks

From April, furnished holiday lets will be taxed the same as long-term rentals. That means no more special allowances, which could reduce profits for property owners.

Big Changes for Non-Domiciled Individuals

The domicile-based tax system is ending, replaced with a residency-based model. Key changes include:

Tax on worldwide income for anyone resident in the UK for 10 of the last 20 years
Remittance basis scrapped, foreign income is taxable whether brought into the UK or not
A Temporary Repatriation Facility (TRF) allows a one-off reduced tax rate to bring in pre-April 2025 foreign income
Capital Gains Tax re-basing applies to assets held before April 2017, so only gains made after 6 April 2025 will be taxed

Double Cab Pick-Ups Now Treated as Cars

From 1 April (for Corporation Tax) and 6 April (for Income Tax), vehicles like Ford Rangers are no longer treated as commercial vehicles for tax purposes.

This means: