What's Changing? Key Highlights for Your Business
From April 2025, Employers’ National Insurance Contributions (NICs) will increase from 13.8% to 15%, significantly raising employment costs for businesses. Additionally, the threshold at which employers start paying NICs will drop from £9,100 to £5,000, further increasing liabilities for smaller businesses. While the Employment Allowance will rise from £5,000 to £10,500, providing some relief, businesses will need to carefully evaluate their payroll strategies.
What this means for your business:
- Increased costs per employee, require a review of your workforce structure.
- Potential need to defer pay raises or new recruitment.
- Opportunities to explore alternative remuneration structures or contractor arrangements.
Cadre Advisory can help you assess the financial impact and implement strategies to mitigate these costs while maintaining compliance.
Starting in April 2026, changes to Inheritance Tax (IHT) relief for business and agricultural assets will limit the 100% relief to the first £1 million of combined property value. Any value above this threshold will be taxed at a reduced relief rate of 50%, effectively introducing an IHT charge of 20%. Additionally, AIM shares (Alternative Investment Market) will no longer qualify for full IHT exemption.
What this means for your business:
- Increased IHT liabilities on business and agricultural property.
- Greater complexity in succession planning for family-owned businesses and estates.
- Need for strategic restructuring or diversification to minimise tax exposure.
Cadre Advisory specialises in succession planning and can help you navigate these changes with tailored advice to protect your assets and ensure smooth transitions.
The CGT rate for Business Asset Disposal Relief (BADR) will increase from 10% to 14% in April 2025, and further to 18% in April 2026. The lifetime limit for Investors' Relief will also drop from £10 million to £1 million, reducing the financial benefits of these reliefs.
What this means for your business:
- Increased tax liabilities on qualifying business disposals.
- Reduced incentives for investors in small businesses.
- Need for strategic timing of asset disposals before rate increases take effect.
Cadre Advisory can help you plan asset disposals strategically and maximise tax efficiency under the new rules.
Business Rates
Retail, hospitality, and leisure businesses will see a reduction in business rates relief from 75% to 40%, capped at £110,000 per business. Additionally, business rates will now be calculated based on updated rateable values reflecting market conditions since 2017.
What this means for your business:
- Higher operating costs for businesses reliant on-premises.
- Need to reassess property usage and explore cost-saving measures.
- Opportunities to leverage government calculators or relief programs effectively.
Cadre Advisory can assist with evaluating property portfolios and identifying opportunities to reduce costs or optimise operations under the new rates system.
Starting in April 2026, Making Tax digital will start for sole traders and landlords with turnover over £50,000 annually. These businesses will need to make quarterly digital submissions to HMRC instead of just one tax return per year.
Starting in April 2026, HMRC’s new penalty points system will apply stricter compliance measures under MTD. Businesses earning over £50,000 annually must ensure digital submissions are accurate and timely or face penalties.
What this means for your business:
- Increased administrative burden for compliance.
- Need for robust accounting systems that align with MTD requirements.
- Risk of penalties due to non-compliance or late submissions.
Cadre Advisory offers outsourced finance solutions that integrate seamlessly with MTD requirements, ensuring compliance while reducing administrative strain.
How Cadre Advisory Can Help Your Business:
Navigating these changes requires a proactive approach. Cadre Advisory offers a comprehensive suite of services designed to help your business thrive:
- Strategic Tax Planning: We'll develop a customised tax plan to minimise your liabilities and maximise your profits in light of the upcoming changes.
- Compliance and Reporting: Ensure you meet all your obligations with our expert guidance on compliance and reporting requirements.
- Financial Forecasting: Understand the potential impact of tax changes on your cash flow and profitability with our detailed financial forecasting services.
- Business Restructuring (if applicable): If necessary, we can advise on business restructuring strategies to optimise your tax position.
- Wealth Management Integration: Leverage our integrated wealth management services to align your business and personal financial goals.
Summary
The upcoming tax changes in 2025 and 2026 present significant challenges but also opportunities for strategic planning. Cadre Advisory is here to help businesses like yours navigate these reforms with tailored solutions that minimise liabilities, optimise operations, and ensure long-term success. Contact us today to future-proof your business!
Client Testimonials:
" I have recently moved to Cadre and they are great. Our account manager Jamie Williams in particular is professional, responsive and really knows his clients. We feel looked after and would definitely recommend! "
-Tudor Barber-
Director
" Tom and the team at Cadre have been with us throughout the growth of our business, helping with all our financial needs and easing our worries along the way. We'd highly recommend them to anyone looking for an understanding and capable financial advisory service for everyone from sole traders to high-growth technology scale-ups. "
-Jules Farrow-
CTO
" I have used Cadre on a number of occasions for transactions ranging from simple purchases to complex by outs and they have always delivered above and beyond some of their competitors whom I've also had experience with. I have absolutely no hesitation in recommending this company to anyone. "
-Luke Egan-
Director
" Working with Tom and the team has been an absolute pleasure and an easy experience. They clearly and accurately present actionable reports as an outsourced finance function. If you are a new or established business Cadre will certainly set you on the right path with there extensive knowledge and capability. "
-Adam Slyfield-
Portfolio Manager
Don’t Let Tax Changes Catch You Off Guard — Get the Guide Today!
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About Cadre Advisory:
At Cadre Advisory, we pride ourselves on being "Great individuals. Collectively brilliant." Founded by Tom O’Brien and Jamie Williams over five years ago, our mission has always been to simplify business finance and accountancy while empowering entrepreneurs to scale and grow their companies. With a team of 12 expert advisors offering a complete outsourced finance solution, we provide tailored advice that meets your unique needs. Our newly launched Wealth Management Division further enhances our ability to deliver holistic solutions by aligning tax planning with wealth management strategies. We are committed to helping businesses like yours thrive in the face of evolving tax regulations.
