As the 2023/24 tax return deadline of 31 January 2025 approaches, it’s crucial to act promptly to avoid penalties. Whether you’re filing a personal, partnership, or trust return, ensuring your tax affairs are in order is essential. Here’s what you need to know and how we can help.

Understanding the Tax Return Deadline

The electronic submission deadline for all 2023/24 self-assessment returns is 31 January 2025. This applies if you’ve received a notice to file more than three months ago. Missing this deadline will result in a £100 late filing penalty, with further penalties accruing if the delay continues beyond three months.

In addition to filing, any tax owed must also be paid by 31 January 2025. Late payments will incur interest at 8.75% starting from 6 April 2025, so prompt action can save you money and stress.

Why Early Preparation Matters

Filing your tax return can be a complex process, and preparing a complete and accurate submission takes time. By providing your financial information to us early, you’ll allow us to ensure everything is in order before the tax return deadline. This reduces the risk of errors and gives you peace of mind.

If you’ve received a notice to file but are unsure whether you need to complete a return, we can help. Notices to file can be cancelled if the criteria for submission are not met, but this needs to be resolved promptly to avoid unnecessary complications.

Our Tax Director, Tom Foster, provides a bite-sized summary of the key tax points from the UK Budget 2024. This latest budget introduces impactful tax changes that could affect both individuals and businesses. Here, Tom breaks down the essentials, giving you a clear overview of what’s changing and when. As a firm of Chartered Accountants and Tax Advisers based on the South Coast, we’re here to help you navigate these updates with ease and confidence.

Changes Effective Tomorrow

Increase in SDLT Surcharge
Starting tomorrow, the Stamp Duty Land Tax (SDLT) surcharge on additional property purchases will increase from 3% to 5%. This update affects individuals looking to buy second homes or investment properties and highlights the government’s efforts to moderate property investment.

When it comes to giving tax advice, I prefer to deal with knowns and certainties. Advising action based purely on rumours or potential changes can lead to unnecessary tax liabilities. That said, it’s crucial to align your tax planning with your intentions. For instance, if you weren’t already planning on selling, gifting, or investing, there’s often no sense in making hasty decisions purely out of fear of the unknown.

Changes Effective from April 2025

With the upcoming budget looming, many people are wondering if changes to tax laws will impact their financial planning. In these uncertain times, it’s more important than ever to focus on pre-budget tax planning tips to ensure you’re making the right decisions. So, Tax Director Tom Foster has outlined. his suggestions for how people may want to plan ahead.

Tom says:

“While speculation about possible changes is rife, my approach is always based on what we know for sure.

Focus on Certainty, Not Speculation

When it comes to giving tax advice, I prefer to deal with knowns and certainties. Advising action based purely on rumours or potential changes can lead to unnecessary tax liabilities. That said, it’s crucial to align your tax planning with your intentions. For instance, if you weren’t already planning on selling, gifting, or investing, there’s often no sense in making hasty decisions purely out of fear of the unknown.

Consider Your Personal Plans

In every scenario, I encourage people and businesses to think carefully about their long-term goals. If you’re not planning any significant transactions—such as selling shares or transferring assets—there’s often no need to rush. However, for those who were already considering such actions, now may be the time to act, just in case the budget introduces changes that could impact your financial situation.

Last-Minute Pre-Budget Tax Planning Tips

If you’re concerned about how the budget could affect your tax obligations, consider these pre-budget tax planning tips:

1. 1. 1. Tidy up share portfolios – If you were already planning to sell shares, it may be wise to trigger any gains now if share prices are favourable.
      2. Top up pension pots – For those who might be impacted by a potential reduction in the annual pension allowance, it’s worth contributing more now.
      3. Consider gifting assets – If you have assets, like property or shares, that are surplus to your requirements, gifting them now could be a good idea. Just be mindful of any capital gains tax consequences.
      4. Finalise sales – If you’re in the process of selling assets, try to ensure contracts are exchanged before the budget day to lock in current tax rules.
      5. Avoid triggering tax liabilities unnecessarily – Don’t make tax decisions purely based on fear of potential changes. It’s important to assess the facts before acting.
      6.  

Seek Professional Guidance

I’m always available to discuss pre-budget tax planning tips with my clients. If you’re uncertain about whether you should act now or wait, feel free to get in touch. Making informed decisions is key to managing your finances effectively during uncertain times.

By focusing on what you know and taking a measured approach, you can ensure that any actions you take ahead of the budget are in your best financial interest.”

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