Title: Upcoming Tax Changes: What You Need to Know
1. VAT on Private School Fees
Starting January 2025, private school fees will be subject to a 20% VAT charge. This move fulfills a government manifesto pledge and could significantly impact families with children in private education. If you're affected by this change, it's advisable to start planning for the increased costs now.
2. Changes to Non-Domiciled Tax Status
From April 2025, the current non-domiciled tax status will be replaced with a new residence-based regime. This could have substantial implications for individuals currently benefiting from non-dom status. We recommend scheduling a consultation to discuss how these changes might affect your tax situation and explore potential strategies.
3. Increase in Windfall Tax
Energy and gas companies will face a 3% increase in the windfall tax on their profits, effective from November. While this may not directly impact most individuals, it could have broader economic implications and potentially affect energy prices.
4. Future Budget Considerations
The government has hinted at further "difficult decisions" regarding spending, welfare, and tax in the upcoming autumn Budget. Which has been announced for October 2024. While specifics are yet to be announced, this suggests that additional changes may be on the horizon.
As your accountants, we're here to help you navigate these changes and optimise your financial strategy. Don't hesitate to reach out if you have any questions or concerns about how these upcoming tax modifications might affect you or your business.
Stay tuned for more updates as we approach these implementation dates. Remember, proactive planning is key to managing your finances effectively in light of these changes.
