Key Dates for Small Business Owners in 2025
As a small business owner or self-employed professional, staying on top of tax deadlines, employment law updates, and VAT changes is essential to keep your business running smoothly.
Tax Deadlines for Sole Traders
Sole traders are required to make two advance payments, known as payments on account, towards their tax bills. Here are the key dates for 2025:
31 January 2025 – Balance of tax for 2023/24 due and first payment on account for 2024/25.
31 July 2025 – Second payment on account for 2024/25.
31 January 2026 – Balance of tax for 2024/25 due and first payment on account for 2025/26.
Remember, if you're facing difficulties, you can contact HMRC to set up a Time to Pay arrangement to avoid interest charges for late payments.
Self-Assessment Deadlines
Make sure to file your 2024/25 Self Assessment tax return before:
31 October 2025 for paper returns.
31 January 2026 for online returns.
For those new to self-employment, or if you’ve taken on a new partner in your partnership, you must notify HMRC by 5 October 2025 for the 2024/25 tax year.
VAT Updates in 2025
Key changes to VAT legislation include:
1 January 2025 – Private school fees for terms starting on or after this date will now be subject to VAT at the standard rate.
1 May 2025 – Updated VAT Fuel Scale Charge rates for cars for VAT return periods beginning on or after this date.
Routine VAT deadlines will vary depending on your filing schedule. For example, businesses on calendar quarters (March/June/September/December) must file VAT returns and payments by 7 May, 7 August, 7 October, and 7 February.
National Minimum Wage Updates
Starting1 April 2025, the National Minimum Wage rates across the UK will increase as follows:
21 years and over (National Living Wage): £12.21 (up from £11.44).
18–20 years: £10.00 (up from £8.60).
Under 18 and apprentices: £7.55 (up from £6.40).
Proposed Employment Law Changes
The government is considering several employment law changes through the Employment Rights Bill. While these are not yet law, here are a few highlights to watch for:
Statutory Sick Pay (SSP):
Removal of the 3-day waiting period, making SSP payable from the first day of sickness.
Abolition of the Lower Earnings Limit, allowing workers earning below £123 per week to qualify for SSP.
Unfair Dismissal: Introduction of a day-one right for unfair dismissal claims, expected in Autumn 2026.
Parental Leave Protections: Enhanced protections against dismissal during pregnancy and up to six months post-maternity leave.
Minimum Wage: Incremental increases to create a single National Minimum Wage rate for all adults aged 18+ by April 2025.
