Matthews Cooper and The Tax Shop

16/09/2025

We apologise that, due to a fault with BT systems, we cannot receive any incoming calls at the moment. Strangely we are still able to make outgoing calls.

If you need to contact us urgently please email us and we will call you back.

Apologies for any inconvenience

Kind regards
Nick

30/04/2025

Increase to employers’ National Insurance

On 6 April 2025, the rate of employers’ National Insurance contributions (NICs) rose from 13.8% to 15%.

In addition, the threshold at which employers start to pay NICs (known as the secondary threshold) has decreased from £9,100 to £5,000 per year.

The Chancellor announced these changes in the 2024 Autumn Budget, which will lead to around 940,000 employers with an increased NIC liability for the 2025/26 tax year.

As payroll is the biggest cost for many small and medium-sized businesses, this has the potential to significantly impact cash flow and profits.

To help protect smaller businesses from the employer’s NICs increase, the Employment Allowance was raised from £5,000 to £10,500 per year from 6 April 2025.

30/04/2025

National Insurance changes

Both the Lower Earnings Limit (LEL) and Small Profits Threshold (SPT) rates increased by 1.7% on 6 April 2025.

The LEL is £6,500 per year, which is the minimum amount an employee must earn before the employee has to pay NICs.

The SPT is £6,845 per year, and the minimum level of annual profit that a self-employed person must earn before they are required to pay Class 2 NICS.

For individuals paying voluntarily, Class 2 and Class 3 NICs have increased by 1.7% in 2025/26. The main Class 2 rate is £3.50 per week and the Class 3 rate is £17.75 per week.

30/04/2025

Minimum wage increase

As an employer, you’ll need to consider wage increases to both the National Living Wage and the National Minimum Wage.

Since 1 April 2025, the National Living Wage rate is £12.21 for employees aged 21 and above.

At the same time, the National Minimum Wage rate has increased to:

£10 for employees aged 18 to 20
£7.55 for employees who are under 18
£7.55 for apprentices.

30/04/2025

Capital Gains Tax changes

The tax rate for Business Asset Disposal Relief (BADR) and Investors’ Relief (IR)—previously known as Entrepreneur’s Relief—will increase in stages, rising from 10% to 14% from 6 April 2025, before reaching 18% from 6 April 2026.

If you’re planning to sell business assets, these changes could lead to higher tax liabilities.

30/04/2025

Furnished holiday lettings tax treatment scrapped

The favourable tax treatment for Furnished Holiday Lettings (FHLs) has been abolished, as of 6 April 2025.

With these rule changes, FHL properties will be treated the same as other UK or overseas property businesses, following the same tax rules as non-FHL properties.

This will apply to individuals, companies, and trusts that own, operate, or sell FHL properties.

15/04/2025

If you're self-employed or earn rental income, Making Tax Digital (MTD) could soon apply to you.

Here’s what we know so far:
From April 2026 – MTD applies if you earn over £50,000
From April 2027 – The limit drops to £30,000
From April 2028 – It will apply to anyone earning over £20,000

If you're earning under £20,000, you're not included yet — but that might change in future updates.

What will change?

You'll need to keep digital records, use approved software so no more spreadsheets or carrier bags of receipts!

Send updates to HMRC four times a year, not just once.

If you're a client of ours, don’t worry — we’ll contact anyone affected and help you through it

If you’re already using bookkeeping software you are on the right track, if not please contact one of our team and we'll help you get set up in a way that works for you

If you have any queries about how MTD will affect you, please give us a call and we'll do our best to help.

Call now to connect with business.

20/11/2024

Beware the tax increases on pick-up trucks hidden in the Budget

Double cab pick-ups to be treated as company cars... hidden in the small print of the Budget, the Government says it will treat double cab pick-up vehicles with a payload of one tonne or more as a car for tax purposes.

From April 2025, for corporation tax, and from April 6, 2025 for, income tax, it says that double cab pick-ups will be treated as cars for the purposes of capital allowances, BIK and some deductions from business profits.

The existing capital allowances treatment will apply to those who purchase double cab pick-ups before April 2025.

Transitional BIK arrangements will apply for employers that have purchased, leased, or ordered a double cab pick-up before April 6, 2025.

The Treasury says that they will be able to use the previous treatment, until the earlier of disposal, lease expiry, or April 5, 2029.

There have also been changes relating to certain vans that are not fitted out as purely commercial vehicles. One of the most notable instances involved Coca-Cola, which resulted in HMRC winning the appeal that Coca-Cola’s Vauxhall Vivaro and VW Transporter T5 Kombis (1st and 2nd generation) were cars and not vans.

It will also mean the BIK paid by employees will rise by thousands of pounds a year. Currently all pick-ups are subject to a fixed benefit of £3,960... a tax bill of £792 for a basic rate tax payer.

Going forwards, a Ford Ranger, with a list price of circa £48,000 and CO2 emissions of more than 170g/km, would be in the 37% bracket meaning BIK of around £17,700 a year, leading to employee tax of £7,110 a year for a 40% taxpayer or £3,550 a year for a 20% taxpayer.

30/10/2024

So there you have it, a £40bn tax increase with employers being asked to contribute over £25bn in increases in Employers NI.

Its a stealthy way of raising revenue. Employers will have to pass on those increases to customers by way of price increases which creates inflation and the cost of employing staff has gone up so how will that affect employment?

One commentator said “In the long run, we would expect the majority of a rise in employer NICs to be passed on to workers in the form of lower wages, which would in turn mean lower income tax and employee NICs liabilities.”

No doubt there will be more tax changes in the Finance Bill when it is published in detail.

30/10/2024

No extension on income tax threshold freeze beyond 2028
The Government will not extend the freeze on income tax and national insurance thresholds beyond 2027/28, the Chancellor has announced.

There was speculation Reeves would extend the freeze, in a move that would have been criticised as a way for the Treasury to boost revenue from income tax without increasing its rates. Since 2021, the personal allowance has been frozen at £12,570. This is the amount that can be paid before income tax deductions begin.

The three rates of income tax have also remained frozen during this time. Although an extension isn’t an income tax rise per se, it would have meant more workers paying more income tax in effect.

30/10/2024

National Minimum Wage to rise by 6.7%

As announced yesterday, Reeves says the National Living Wage for people aged 21 or older will rise by 6.7% from £11.44 an hour to £12.21 from next April.

Earlier this year the Low Pay Commission, external recommended that the National Living Wage should increase by 5.8% to £12.10, but the chancellor has gone slightly further.

In addition, the National Minimum Wage will rise for people aged between 18 and 20-years old from £8.60 to £10.