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Side hustle trading threshold raised to £3,000 per year.

The reporting threshold for trading income for self assessment is being lifted from £1,000 to £3,000 gross within this parliament, according to the Treasury.

This includes people trading clothes online, dog-walking or gardening on the side, driving a taxi, or creating content online.

The Treasury says this will benefit around 300,000 taxpayers who will no longer need to file a self-assessment tax return.

An estimated 90,000 of them will have no tax to pay and no reason to report their trading income to HMRC in the future at all. Others will be able to pay any tax they owe through a new, simple online service.

Source:

Boost for side-hustlers as 300,000 people to be taken out of tax returns, government announces Tax admin changes to mean up to 300,000 taxpayers will no longer be required to file a tax return.

The National Living Wage (NLW) will rise from 1 April 2025 from £11.44 to £12.21 to reflect the cost of living.

The National Minimum Wage in 2025 On 1 April 2025, minimum wage rates will increase. This short report from the Low Pay Commission looks at the impact of those changes.

New company car advisory fuel rates have been published and took effect from 1 March 2025.

HMRC guidance states that the rates only apply when you either:
> reimburse employees for business travel in their company cars
> require employees to repay the cost of fuel used for private travel.

You must not use these rates in any other circumstances.

HMRC has published the latest issue of the Employer Bulletin. The February issue has information on various topics, including:

> End-of-year reporting
> Payrolling employees' benefits and expenses
> Get ready for changes to National Insurance
> New online iForm for PAYE employment expenses
> Expanding the cash basis
> Relevant motoring expenditure - National Insurance contributions.

February 2025 issue of the Employer Bulletin We’d like to set additional cookies to understand how you use GOV.UK, remember your settings and improve government services.

With two changes increasing National Insurance for employers and a minimum wage increase in April, employers are being urged to plan for these now.

An early review of the effects of these increases will help to ensure a firm's cash flows through 2025 are properly considered.

This is important as there may be significant cost increases for many firms.

The government launches the Industrial Strategy Advisory Council to boost growth and living standards.
The strategy will help maintain a pro-business environment to capture a greater share of internationally mobile investment and motivate domestic businesses to boost their investment and scale up their growth. It will channel support to sectors and geographical clusters with the highest growth potential for the next decade.

Government launches Industrial Strategy Advisory Council to boost growth and living standards The government has announced the members of the Industrial Strategy Advisory Council, as the government looks to deliver long-term growth in key sectors.

HMRC has published the latest issue of the Employer Bulletin.
The December issue has information on various topics, including:

National Insurance increases for employers.

From April 2025, The National Insurance rate employers pay will increase to 15% from 13.8%. At the same time, the secondary threshold at which employers start paying National insurance will be reduced from £9,100 to £5,000. This significantly increases the costs for employers.

According to official figures, the UK inflation rate has increased for the second month in a row and hit 2.6% in the year to November.

This means the Bank of England will almost certainly not cut interest rates when it meets on Thursday.

The Federation of Small Businesses (FSB) has warned that the government's Make Work Pay Bill lacks a pro-growth element and will increase economic inactivity.

Make Work Pay a “rushed job” which threatens employment and growth, say small firms This legislation risks deterring small employers from taking a chance on someone who has had a significant period out of the workplace, shutting those doors and deepening social exclusion

Advisory Fuel Rates

New Advisory Fuel Rates (AFR) for company car users apply starting December 1st 2024. The rates can be found here:

Advisory fuel rates Find out about advisory fuel rates for company car users, when you can use them, and how they're calculated.