Understanding the Importance of CIS Registration

In the UK construction industry, the Construction Industry Scheme (CIS) is a crucial component. It’s designed to streamline tax collection from construction related activities. Whether you’re a contractor or a subcontractor, understanding CIS registration is essential to stay compliant and avoid penalties. In this article, we’ll dive into the importance of CIS registration, how it […]

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

The Chancellor Rachel Reeves presented her first Budget on 30 October 2024. In her speech she stated the Budget ‘lays the foundations for growth while ensuring fairness, stability, and responsibility in the public finances’. The measures announced take effect across 2025 and beyond, with significant reforms to business taxation, inheritance tax, and support for households. […]