Things to Be Aware of for This Year’s Tax Return

With the Self Assessment deadline of 31 January 2026 now on the horizon, it’s a good time to start preparing your tax return for 2024–25. A few key updates and rule changes could affect what you need to report and how your tax is calculated this year.

Here’s what to look out for:

1. Capital Gains Tax (CGT) rate change

If you’ve sold assets such as shares, property, or investments during the 2024–25 tax year, it’s important to note that Capital Gains Tax rates changed partway through the year.

The Self Assessment system does not automatically calculate which rate applies based on your sale date. If you sold qualifying assets after 30 October 2024, you’ll need to ensure the new CGT rate is factored in when you complete your return.

If you’re unsure how this applies to you, we can help check the timing of your disposals and make sure your return reflects the correct rate.

2. High Income Child Benefit Charge (HICBC)

A new digital PAYE service means some taxpayers who only file a return to pay the High Income Child Benefit Charge may no longer need to complete a Self Assessment return.

Eligible individuals can now have the charge collected automatically through their tax code instead. If this applies to you, HMRC can de-register you from Self Assessment, either for the current tax year or the next one, depending on whether your return has already been submitted.

This change aims to simplify the process for many higher earners who previously had to complete a return solely for this purpose.

3. Winter Fuel and Heating Payments

If you receive a Winter Fuel Payment (or the Pension Age Winter Heating Payment in Scotland), you do not need to include it on your 2024–25 tax return.

These payments relate to the winter period of 2025–26, and will therefore appear on your 2025–26 return, due by 31 January 2027.

4. Looking ahead: Making Tax Digital for Income Tax

From 6 April 2026, sole traders and landlords with a turnover above £50,000 will be required to follow the Making Tax Digital (MTD) for Income Tax rules.

This means you’ll need to:

• Keep digital business records, and

• Submit quarterly updates of your income and expenses through MTD-compatible software.
  

We recommend preparing early by reviewing your bookkeeping systems and considering software options now. Early adoption will make the transition smoother when the rules take effect.

5. Stay alert to scams

As the Self Assessment deadline approaches, HMRC is warning taxpayers to stay vigilant. Scammers often impersonate HMRC by phone, text, or email — particularly around refund or payment deadlines.

Remember: HMRC will never ask for your login details or payment information by text or email. Always access your HMRC account directly through gov.uk and refer to official guidance on spotting and reporting scams.

6. Get a head start

With fewer than 100 days until the 31 January deadline, now is a great time to get started on your return. Filing early:

• Gives you peace of mind,

• Allows time to resolve any queries, and

• Helps you plan for your upcoming tax payment.
  

If you’d like support with preparing or submitting your return — or advice on Making Tax Digital for Income Tax — our team at SJC, Chartered Accountants is here to help.

Get in touch with us today to make sure you’re on track and ready for the deadline.