January & Tax Deadlines: What You Need to Know to Start the Year Off Right

January 8, 2025

January is the month when most people start looking to get their affairs in order—whether it’s tackling New Year’s resolutions, organising finances, or setting personal goals. For many, that includes getting a head start on taxes. While it might not be the most exciting item on your to-do list, staying on top of tax deadlines is essential, especially if you’re a sole trader or a limited company with a January year end.

To help you stay on track, we’ve compiled a list of key deadlines and a few tips to ensure you’re prepared.

 

Upcoming Deadlines

 

31st January 2025: Self-Assessment Tax Return Amendment Deadline

The 31st of January 2025 is the final day to amend your tax return for previous tax years. For example, if you’re an Income Taxpayer with a year-end of 5th April 2023 as a sole trader, or a Corporation Taxpayer and have a 31st January 2023 year end, the deadline to amend your returns for those periods is the 31st of January 2025.

If you’ve incurred capital expenditure in or prior to your year-end (e.g., YE 2023) and haven’t yet made a capital allowances claim, this is your chance to amend your return and potentially receive a rebate for tax already paid. It also offers an opportunity to reduce your tax liabilities going forward.

 

Interaction with the Annual Investment Allowance (AIA) deadline

The Annual Investment Allowance (AIA) allows you to claim a 100% allowance of up to £1,000,000 for qualifying plant and machinery, allowing you to accelerate your capital allowances and reduce your taxable profits in the year of purchase.

While the AIA deadline is not fixed to a specific date in January, it is linked to your business’s year-end. The AIA claim must be made within the year the capital expenditure was incurred. If you miss the deadline to make your AIA claim, you can still claim capital allowances, but they will be subject to the standard writing-down allowance rates (18% and 6%), which could have a less favourable impact on your tax position.

Missing this deadline can have a significant impact on cashflow, so it’s important to ensure any capital projects which may be applicable have been reviewed on time, and allowances captured.

 

31st March and 5th April – Furnished Holiday Let (FHL) Capital Allowances

Starting from 1st April 2025 for Corporation Tax (or 6th April 2025 for Income Tax), capital allowances on Furnished Holiday Lets (FHLs) will no longer be available for new expenditure. Instead, FHL properties will be subject to ‘replacement of domestic items relief,’ aligning them with other property businesses.

If you have acquired or incurred expenditure on an FHL before this date, it’s essential to conduct a capital allowances review as soon as possible to ensure no allowances are lost.

We discussed this in more detail in one of our earlier blogs here.

 

Our Top Tip for Staying on Top of Deadlines: Ensure You Have an Expert Team

When it comes to navigating tax deadlines, having an expert team on your side can make all the difference. Tax legislation can be complex, and deadlines related to Self-Assessment, Annual Investment Allowance, S198 elections, and Furnished Holiday Let properties require careful attention.

Having a trusted accountant, alongside a capital allowances specialist, can provide peace of mind. They’ll help you meet deadlines, maximise your tax savings, and avoid costly mistakes.

Here’s how the team at Bonham & Brook can help:

  • Accurate Advice: We’ll guide you through the intricacies of the legislation, from qualifying for the Annual Investment Allowance to determining whether your property meets the Furnished Holiday Let requirements.
  • Timely Reminders: Managing multiple tax deadlines can be stressful. Our team will ensure you don’t miss any critical dates that impact your business, helping you stay on top of what matters most.
  • HMRC Compliance: Working with a specialist ensures that your claims stand up to HMRC scrutiny. You’ll have the peace of mind of knowing your submissions are compliant, and that you’ll be supported in the unlikely event of an enquiry.

 

Conclusion

Navigating tax deadlines can feel overwhelming, but with the right support, it doesn’t have to be. If you’d like assistance with your capital allowances or need help ensuring you meet your upcoming deadlines, please don’t hesitate to get in touch with our expert team today!

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