2024/25 tax returns and class 2 NIC
For 2024/25 onwards, class 2 NIC is treated as paid for sole traders and partners with profits in excess of £6,725. Individuals with profits of up to £6,725 continue to have the option of paying class 2 NIC on a voluntary basis to accrue rights to the state pension and other benefits.
ICAEW understands that some self assessment calculations (SA302) issued by HMRC following the submission of a tax return for 2024/25 have included class 2 NIC in error. HMRC is aware of this issue and is investigating.
HMRC guidance for new businesses
HMRC has published a new collection page for its guidance for taxpayers on setting up and running a small business. The page includes links to written guidance and videos on a range of topics, including:
- choosing a business structure;
- responsibilities as a business owner; and
- dealing with tax.
HMRC webinars for employers
HMRC will deliver webinars on the employment taxes implications of the following topics:
- social functions and parties: 13 June 2025; and
- trivial benefits: 17 June 2025.
See GOV.UK for recorded webinars on a range of related areas
International tax round-up
CFE Tax Advisers Europe has published an opinion statement calling for a temporary pause in the application of the Pillar 2 taxes. CFE says that, as global implementation of Pillar 2 has stalled, with the US, China and India yet to adopt the measures, EU groups will face a competitive disadvantage compared to non-EU counterparts. To prevent this, CFE suggests that the income inclusion rule and the undertaxed profits rule should be reduced to 0% for a set period.
Read the latest news on Pillar 2 in the UK
Tax Faculty
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