Remember to avoid an HMRC penalty you must have filed and paid your personal 2025 tax return and tax liability by 31st January 2026. You should also pay, to avoid extra interest, the first payment on account towards your 2026 tax liability.
Chancellor Rachel Reeves has set out details of The Budget 2025, which was deilvered on Wednesday 26th November. Here we discuss the main talking points.
If are a non tax payer earning below £12,570 you can earn up to £5,000 tax free of interest. If you are a basic rate tax payer earning over £12,570 up to £50,000 you can earn up to £1,000 of interest tax free.
From November 2025 Companies house legally have to check the ID for every Director. This is already introduced for new companies but will be required for all existing companies when the annual confirmation statement is filed with Companies house.
Regarding electric vehicles & tax allowances, if used for business, both self employed and Limited company businesses benefit from 100% first year capital allowances to help with their tax liability. This reduces to 18% of the cost price per year for used electric vehicles. Also you can claim 100% of the VAT for electric cars if used solely for business, when usually this is restricted to 50% for non electric cars.
The two best ways to reduce your tax bill is by either increasing your capital expenditure – buying machinery, vans, tools etc to help with future growth whilst obtaining the best capital allowances to reduce your tax. OR pensions – by paying into a company pension scheme saves up to 25% of the contribution in tax.