End of tax year planning for 2024/25
March 31, 2025
by Vine
Tax
For UK taxpayers, allowances and tax rates normally change or reset at the end of each tax year.
The chancellor has not announced any tax increases in the 2025 Spring statement, so we are concentration on maximising allowances and of course the tax thresholds.
Ahead of the new tax year (06/04/25) we have a summary of some useful things to consider to ensure that you don’t lose out on your allowances and reliefs.
Pension allowances
A company can make pension contributions on behalf of its employees or officers in a private pension. The allowance for each year for 2024/25 is £60,000, you can utilise allowances for the 3 years prior if they are still unused but need to have used your current allowance first.
If your business is in a good place in terms of cash this is definitely with looking into.
The payments are considered a business expense and will reduce the corporation tax liability.
Speak to a financial advisor to go through your options.
Dividends
Consider the timing of your dividend payments, could another dividend between now and 05/04/25 tip you over the next tax threshold? For example, you start losing your personal allowance when you go over the 100k threshold, could a dividend payment be delayed until the 06/04/2025?
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Income tax thresholds
On the flipside, have you used up your basic rate tax allowance. Remember this resets at the beginning of the new tax year and cannot be carried forward.
ISA allowances
If you pay savings into an ISA, check if you have used your whole allowance for the year.
The allowance for adults is £20,000 and £9,000 for children
Trivial benefits
Trivial benefits are a great way to mark special occasions for your employees – this includes company directors of close companies.
A trivial benefit is one that costs £50 inc VAT or less, cannot be a reward for work done and should not be convertible to cash.
Company directors of close companies can claim up to £300.00 inc VAT per tax year.
Trivial benefits are tax free and considered a business expense.
Gift Aid
Not only is giving to charity great, it can also save you tax if you are a 40% or more taxpayer by extending your basic rate tax band depending on how much you give.
Get those donations in before 06/04/25.