What This Means for Business Compliance
Following Autumn Budget 2024, many compliance‐related changes have gone or will go into effect from 6 April 2025 onwards. Businesses should be aware of: shifts in employer NICs, top-ups on Capital Gains Tax, carriage of carried interest, and changes in residency and non-dom status—all of which carry obligations for reporting, payroll, and tax filings. (gov.uk)
Major Compliance Areas
Employer National Insurance Contributions (NICs)
- Rate increases and threshold reductions mean that more payments fall under obligation. Payroll systems must reflect a 15% employer NIC rate from 6 April 2025. (gov.uk)
- Secondary threshold at £5,000/year means NIC liability starts earlier in the pay scale. Systems must categorize earnings properly. (gov.uk)
- Employment Allowance expansion (to £10,500 and removing caps) – companies must ensure eligibility and update claims. (gov.uk)
Capital Gains Tax Reporting
- Enhanced CGT rates and changing reliefs (BADR/IR) require accurate asset tracking and timing of disposals. Ensure your year-end or disposal plans align with the new rates. (gov.uk)
Carried Interest Taxation
- From April 2026, carried interest will be taxed within the Income Tax framework, along with Class 4 NICs, using a multiplier where qualifying. (gov.uk)
- Draft legislation forthcoming—tax advisors should participate in consultations to clarify qualifying criteria. (gov.uk)
Non-Dom and Residency Rules
- Abolition of remittance basis: foreign income and gains generally taxed from first year of residence, with special treatment only for the first four years. (gov.uk)
- Offshore trusts and inheritance tax shelters under review. Plans must reflect that trusts may no longer shield assets as before. (gov.uk)
Actions Businesses Should Take Now
- Update payroll infrastructure before April 2025 to handle new NIC rates and thresholds.
- Review asset registers and timings for disposals to plan for higher CGT rates.
- Engage advisors for carried interest planning if you operate or invest in funds, private equity, etc.
- Assess your non-dom status or those of key employees—bring forward or defer foreign income/gains as appropriate.
- Train finance teams to handle changes to inheritance tax, property reliefs, and sessional workers or small profits threshold adjustments.
Scenario Example
- A tech startup founder expects to sell shares in 2025-26—if they arrange for disposal before 6 April 2025, BADR at 14% applies; after that, ordinary CGT rate of 18%/24% likely.
- A fund manager expecting carried interest should evaluate whether their carried interest meets “qualifying” criteria to apply multiplier and avoid full income tax + NICs burden starting April 2026.
Compliance Category TaxHome: UK Author: NomadicTax Research Team ReadTime: 6 min Published: true