From 1 April 2025 the VAT registration threshold remains at £90,000 and the deregistration threshold at £88,000

Private school fees for education and vocational training will no longer benefit from VAT exemption and will be subject to VAT at the standard rate (20%). The change will apply to terms beginning on or after 1 January 2025 although certain prepayments made after 29 July 2024 will also be included.

Stamp Duty Land Tax changes

Individuals who purchase additional residential properties, such as second homes or buy-to-let properties, in England and Northern Ireland, generally pay Stamp Duty Land Tax (SDLT) at 3% above the standard SDLT rates. This rate is increased to 5% for transactions with an effective date (usually the date of completion) on or after 31 October 2024.

Similar changes are made for companies and other non-natural persons purchasing residential property in England and Northern Ireland.

In addition, there is also an increase in the single rate of SDLT payable by companies and other non-natural persons when purchasing residential properties worth more than £500,000, from 15% to 17%, from the same date.

Making Tax Digital for Income Tax Self Assessment

The government is committed to delivering Making Tax Digital for Income Tax Self Assessment, which is supposed to start in April 2026. The government will expand the rollout of the programme to those with incomes over £20,000 by the end of this Parliament and will set out the precise timing for this at a future fiscal event.

Other changes

HMRC has announced a variety of compliance initiatives, which include the following:

• investing in additional HMRC compliance staff and debt management staff
• modernising HMRC debt management IT systems
• pre-populating tax returns with Child Benefit data (for the purposes of the High Income Child Benefit Charge)
• increasing the late payment interest rate charged by HMRC on unpaid tax liabilities by 1.5%.

Three core financial statements every entrepreneur should know are the balance sheet, profit and loss statement, and cash flow statement.

The balance sheet shows what your business owns and owes, the profit and loss statement tracks income and expenses, and the cash flow statement highlights how money moves through the business. Together, these documents offer a full view of financial performance.

Positive cash flow is essential for business survival. Entrepreneurs should regularly review incoming and outgoing funds, plan ahead for seasonal fluctuations, and maintain a reserve for unexpected expenses. Tracking cash flow provides clarity and reduces the risk of shortages impacting operations.

Regular monitoring helps identify spending patterns, protect profits, and ensure the business remains financially stable. Planning ahead enables smoother decision-making and supports sustainable growth.

Strategic accounting helps entrepreneurs identify opportunities, manage risks, and plan for expansion. Reviewing financial trends allows you to forecast future performance, allocate resources effectively, and make informed decisions about hiring, investment, or scaling operations. With accurate accounting data, growth becomes more sustainable and predictable.