Essential dates for the 2024/25 tax year
To make it as easy as possible for you to communicate key dates and changes that could impact your clients, we’ve compiled an overview of the most significant deadlines for 2024/25 – along with tips on what you can do to support them throughout.
1. New year, new rates: April 2024
The new tax year kicked off on 6th April, marking the beginning of several changes to tax rates and thresholds. Notably, it brought a reduction in capital gains tax and dividend allowance, national insurance cuts for the self-employed, and the removal of the pensions lifetime allowance. You can find all the specific changes, here, with comparisons to the previous year, for quick reference.
What you can do: Help your clients proactively review any changes that are relevant to them by reaching out and explaining in detail what the implications will be – along with your suggestions of how to tackle them.
2. Quarterly VAT returns
For businesses that submit VAT returns quarterly, the first submission for the 2024/25 tax year was due on 7th May 2024. To ensure that their VAT returns are correct – and to save you a headache when it’s time to handle the submissions process – it’s essential that businesses maintain accurate records throughout the year.
What you can do: Encourage your clients to use automated software to track their VAT liabilities in real-time. This not only helps with accuracy but also ensures that they don’t miss any deadlines. Capium’s integrated VAT software can simplify this process, reducing the risk of errors and penalties.
3. Self-assessment payment on account: 31st July 2024
For clients who make payments on account, the second instalment was due by 31st July 2024. Payment on account can be confusing and the amount due can be a surprise, especially for those who experienced an increase in income, leading to higher payments.
What you can do: Explain how payment on account works and suggest setting aside funds throughout the year to cover these payments. If they’ve had a particularly profitable year, help them forecast their tax liabilities to avoid any unexpected financial strain.
4. Annual pension contributions
The pension annual allowance will be a critical consideration for many, especially for high earners. The abolishment of the pensions lifetime allowance (LTA) means there’s no longer a limit on the amount of money you can build up in pensions over your lifetime without incurring a tax charge.
What you can do: Explain how the two new allowances (the ‘lump sum allowance’ and the ‘lump sum and death benefit’) now work. Review your clients’ pension arrangements and advise them on how to maximise efficiency – perhaps by making additional contributions before the end of the tax year or planning for the next year’s contributions in advance.
5. Corporation tax return: 31st December 2024
Any companies with a financial year ending on 31st March 2024 must file a corporation tax return by 31st December 2024. As an accountant, you’re only too aware of the significance of this deadline and the substantial penalties that missing it can lead to.
What you can do: Lean on the right tech to help encourage clients to prepare early. Using Capium’s cloud-based software, accountants can collaborate with their clients in real-time, ensuring that all necessary records and documents are in order well before the deadline.
6. Christmas party exemptions: planning ahead
As the festive season approaches, clients may plan to reward their staff with a Christmas party. According to the tax exemption rules, businesses can spend up to £150 per head without incurring tax liabilities.
What you can do: Advise your clients to keep detailed records of their spending to ensure they stay within the exemption limit. This is also a good opportunity to review other employee benefits and ensure they are tax efficient.
7. Preparing for the New Year: January 2025
The New Year brings the deadline for self-assessment tax returns, with submissions due by 31st January 2025. This is a key date for many clients, especially those who have additional sources of income outside of their primary employment.
What you can do: Start gathering information from your clients as early as possible. Use Capium’s self-assessment module to streamline the process and reduce the annual bottleneck, ensuring that all returns are accurate and submitted on time.
Your clients need you more than ever
The complexities of the UK tax system can be overwhelming, and the risks of non-compliance are significant. But your role isn’t just about keeping clients compliant; it’s about adding value to their business.
By leveraging technology like Capium, you can provide your clients with real-time insights, automate routine tasks, and focus on delivering strategic advice that helps them grow their business – navigating the challenges of the 2024/25 tax year.
Book a demo today to see what Capium can do for your Practice.
