Month: April 2025

From April 2025, Child Benefit increases to £26.05 for the eldest child and £17.25 for others. Payments stop after a child turns 16 unless they continue in approved education or training. Parents must update HMRC by 31 August to avoid disruptions.

Taxpayers entitled to the child benefit should be aware that HMRC usually stop paying child benefit on the 31 August following a child’s 16th Birthday. Under qualifying circumstances, the child benefit payment can continue until a child reaches their 20th birthday if they stay in approved education or training. This must be confirmed to HMRC, or payments will stop.

Approved education must be full-time, with more than 12 hours per week of supervised study or course-related work experience. Approved education includes A levels, T levels, Scottish Highers, NVQs up to Level 3, home education (if started before 16 or after 16 with special educational needs), study programmes in England, and pre-apprenticeships. The course must be started before the child turns 19.

Child Benefit cannot be claimed if your child is:

• Studying for a university degree or BTEC Higher National Certificate (advanced course)
• On an apprenticeship (unless it’s a Foundation Apprenticeship in Wales)
• Undertaking a course with an employer’s agreement (e.g., to secure a job or gain skills for an existing job)

Approved training should be unpaid and can include:

• Wales: Foundation Apprenticeships, Traineeships, or the Jobs Growth Wales scheme
• Scotland: The No One Left Behind programme
• Northern Ireland: PEACEPLUS Youth Programme 3.2, Training for Success, or Skills for Life and Work

Courses that are part of a job contract are not approved.

HMRC sends a letter in your child’s last year at school asking you to confirm their plans. The letters include a QR code which, when scanned, directs them straight to GOV.UK to update their claim quickly and easily online. This can also be done on the HMRC app.

Parents have until 31 August 2025 to tell HMRC that their 16-year-old is continuing their education or training, and to continue receiving Child Benefit. No child benefit is payable after a young person reaches the age of 20 years.

Renting out part of your home may affect Capital Gains Tax when you sell. While Private Residence Relief applies, Letting Relief can reduce taxable gains. Learn how PRR, Letting Relief, and exemptions impact your tax liability.

If you have tenants in your home, it is essential to understand the Capital Gains Tax (CGT) implications. Typically, there is no CGT on the sale of a property used as your main residence due to Private Residence Relief (PRR). However, if part of your home has been let out, your entitlement to PRR may be affected.

Homeowners who let out part of their property may not qualify for the full PRR, but they could be eligible for letting relief. Letting relief is available to homeowners who live in their property while renting out a portion of it.

The maximum letting relief you can claim is the lesser of the following:

• £40,000
• The amount of PRR due
• The chargeable gain made on the part of the property let out

Example:

• You rent out a large bedroom to a tenant, making up 10% of your home.
• You sell the property and make a gain of £75,000.
• You qualify for PRR on 90% of the property (£67,500).
• The remaining gain of £7,500 relates to the portion of the home that’s been let.

In this case, the maximum letting relief due is £7,500, which is the lower of:

• £40,000
• £67,500 (the PRR due)
• £7,500 (the gain on the part of the property that’s been let)

As a result, you would not owe any CGT-the £75,000 gain is fully covered by £67,500 in PRR and £7,500 in letting relief.

Note that if you have a lodger who shares living space with you or if your children or parents live with you and pay rent or contribute to housekeeping, you are not considered to be letting out part of your home for tax purposes.

If you’re a company director, person with significant control (PSC), or someone who files on behalf of companies, there’s a major change on the horizon. Companies House is tightening up its rules under the Economic Crime and Corporate Transparency Act, and one of the big shifts is the introduction of identity verification.

This isn’t just for new appointments – existing company officers and PSCs will also need to confirm their identity in the coming months. So, whether you’re setting up your first limited company or have been running one for years, now’s the time to understand what’s coming and get ready.

Why is this happening?

The changes are part of a broader government push to clamp down on economic crime, fraud, and misuse of the UK’s company registration system. For too long, it’s been relatively easy to submit inaccurate or false information to Companies House. These new rules aim to increase transparency and ensure that only real, identifiable people are involved in running UK companies.

Who needs to verify?

You’ll need to complete identity verification if you’re:

• A company director
• A person with significant control (usually a major shareholder or someone with real influence over the company)
• A person filing documents on behalf of a company (such as an agent or accountant)

This will also apply to new roles going forward. No one will be able to register a new company or update details unless the relevant individuals have verified their identity.

How will it work?

Verification can be done directly through Companies House or via an Authorised Corporate Service Provider (like your accountant if they’re registered). The process will likely involve uploading a photo ID and a selfie-style video – similar to online banking or digital passport applications.

Companies House hasn’t published an exact launch date yet, but the legislation is in place and implementation is expected later this year.

What should you do now?

Start by checking that your company’s records are up to date. Make sure all directors and PSCs are correctly listed. If you work with a filing agent, have a conversation with them about how they’ll handle verification. And keep an eye on Companies House announcements so you’re not caught off guard when the new system goes live.

Rachel Reeves delivered her much-anticipated Spring Statement on 26 March 2025, setting out plans to balance the books while tackling sluggish growth and rising fiscal pressures. As expected, the reaction has been swift and divided, reflecting the challenge of navigating economic responsibility in an election year.

The statement outlined a bleak economic outlook, with the UK’s growth forecast for 2025 halved from 2% to just 1%. In response, Reeves announced £14 billion in spending cuts, targeting welfare budgets and government departments. She framed these cuts as a necessary correction to secure a projected budget surplus by 2029-30. Simultaneously, she pledged a significant increase in defence spending, citing growing global instability.

Critics from across the political spectrum didn’t hold back. The opposition branded the revised forecasts and spending cuts as a broken promise, accusing the government of leaving the country “weaker and poorer.” Even some within Reeves’s own party raised eyebrows, particularly over the welfare cuts, which are expected to hit over three million households and push around 250,000 people into poverty. Detractors questioned the wisdom of cutting support at a time when many are still feeling the effects of the cost-of-living crisis.

Think tanks and economists added their own critiques. Some argued that Reeves’s plan was fiscally responsible but came at a high social cost. Others pointed out that the “headroom” in public finances is based on optimistic assumptions, and that tax rises may still be on the table come the autumn Budget. Meanwhile, concerns were raised that pushing through rapid welfare changes might have unintended consequences for the lowest income families.

The business community also expressed concern, particularly about the lack of support as firms face higher national insurance contributions and a rise in the national living wage from April. Business leaders warned that these pressures could lead to higher prices, reduced hiring, and stalled investment.

Among the public, reactions have been predictably varied. Some see the statement as a necessary dose of reality, while others feel let down by the prioritisation of defence spending over essential services and household support.

With a general election looming, the Spring Statement has set the stage for further debate. Reeves is banking on her tough choices being seen as prudent. Whether the public agrees remains to be seen.