As we enter the new tax year, several important changes come into effect that could impact your personal and business finances. Here’s what you need to know.
Income Tax Thresholds
The personal allowance remains frozen at £12,570, while the higher rate threshold stays at £50,270. This means more people will be drawn into higher tax brackets as wages rise — a phenomenon known as fiscal drag.
National Insurance Changes
Employer NICs have increased to 15%, with the secondary threshold reduced to £5,000. This represents a significant additional cost for businesses and should be factored into your financial planning.
What Should You Do?
Now is the perfect time to review your tax position. Consider maximizing pension contributions, utilizing ISA allowances, and reviewing your business structure for tax efficiency. Our team is here to help you navigate these changes.