In the April edition, we shine a spotlight on some of the notable tax adjustments taking effect at the onset of the new tax year. While many income tax and national insurance thresholds remain frozen, leading to a growing number of higher rate taxpayers, there’s a positive uptick in the High Income Child Benefit Charge (HICBC) threshold. Starting April 6th, both employees and self-employed individuals will experience a reduction in national insurance contributions, hinting at a potential future abolition.

For the self-employed, significant alterations are on the horizon regarding profit computation, with “cash accounting” becoming the default method unless an alternative is chosen. From April 6th, 2024, there will be a shift in assessing profits, now taxed on results occurring between April 6th and the following April 5th. Limited companies will see no changes in corporation tax rates starting April 2024. However, R&D tax relief adjustments will be applicable to accounting periods beginning on or after April 1st, 2024.

It’s crucial to note that the capital gains tax annual exemption dwindles to just £3,000 per taxpayer for gains realized in 2024/25. On a brighter note, the higher rate on residential property gains diminishes from 28% to 24%, as unveiled in the Spring Budget.