Understanding the Importance of CIS Registration

If you work in construction, CIS registration can have a direct effect on how you are paid, how much tax is deducted, and how smoothly your cash flow runs. The Construction Industry Scheme, known as CIS, is an HMRC scheme for construction work. Under CIS, contractors deduct money from payments made to subcontractors and pass […]

VAT

Rate Type Rate Standard 20% Reduced 5% Zero-rated 0% Registration Threshold £90,000 turnover  

Minimum & Living Wage (from April 2025)

Age/Status Hourly Rate 21+ (National Living Wage) £12.21 18–20 (Updated in April 2025) Under 18 (Updated in April 2025) Apprentice (Updated in April 2025)  

National Insurance Contributions (NICs)

Employees Earnings Rate £242 – £967/week 8% Above £967/week 2% Employers Earnings Above Rate £5,000/year 15%  

Savings Tax

Band Personal Savings Allowance Basic Rate £1,000 Higher Rate £500 Additional Rate £0 Starting Rate for Savings: Up to £5,000 at 0% if other income is low.

Dividend Tax

Band Tax Rate Basic Rate 8.75% Higher Rate 33.75% Additional Rate 39.35% Dividend Allowance: £500 tax-free (reduced from £1,000 in 2024/25).  

Scottish Income Tax Bands

Band Taxable Income Tax Rate Starter £0 – £14,876 19% Basic £14,877 – £26,561 20% Intermediate £26,562 – £43,662 21% Higher £43,663 – £75,000 42% Advanced £75,001 – £125,140 45% Top £125,141+ 48%

Income Tax – England, Wales & NI

Band Taxable Income Tax Rate Personal Allowance £0 – £12,570 0% Basic Rate £12,571 – £50,270 20% Higher Rate £50,271 – £125,140 40% Additional Rate £125,141+ 45% Allowance Reduction: Above £100,000 income, your personal allowance reduces £1 for every £2 earned. Fully lost at £125,140 (creates 60% effective tax band).

Corporation Tax

Profit Band Tax Rate Notes £0 – £50,000 19% Small Profits Rate £50,001 – £250,000 Tapered Marginal relief applies £250,001+ 25% Main rate  

Budget introduction: what the current UK tax rules mean for your business

The UK tax system has changed a lot over recent years, and it is not always easy to keep track of what applies to you. Budget announcements can affect your business costs, tax planning, payroll, VAT, property decisions and how much money you should keep aside for HMRC. If you run a business, work for […]