
New Tax Year 2025/26: What Scottish Small Businesses Need to Know
Introduction
The new tax year is here, and for Scottish small business owners, it’s time to get prepared.
The 2025/26 tax year brings changes that could impact your finances, from income tax bands
to National Insurance contributions. At Clyde Offices, we support small businesses in
Scotland with services like virtual assistants to help with tax prep. In this post, we’ll break
down what you need to know about the new tax year 2025 in Scotland and how to stay
compliant.
Key Changes for the 2025/26 Tax Year in Scotland
Based on historical trends and inflation adjustments, here are the likely updates for 2025/26
(Always confirm with HMRC or the Scottish Budget):
- Income Tax Bands: Scottish tax bands may rise with inflation. The Higher Rate
threshold could increase to around £44,535 (from £43,662 in 2024/25), affecting how
much tax you pay on your salary and dividends. - National Insurance: The Primary Threshold for NICs might rise to £9,282 (from
£9,100), meaning you can earn more before paying contributions. - Dividend Allowance: Likely to remain at £500, as set in 2024/25, impacting how
much tax-free dividend income you can take.
How These Changes Affect Scottish Small Businesses
These updates can impact your business in several ways:
- Payroll Adjustments: If you have employees, ensure your payroll reflects the new
NIC thresholds. A virtual assistant from Clyde Offices can help update your records. - Director’s Salary: As a director, you might adjust your salary to the new Primary
Threshold (£9,282) to minimise tax whilst qualifying for State Pension contributions. - Tax Planning: With a potentially higher tax band, you may be able to take more
dividends without entering the Higher Rate (42%). Plan carefully to optimise your
income.
Tips to Prepare for the New Tax Year
Here’s how to get ready:
1. Review Your Payroll: Use software like Xero to update employee salaries and NICs.
A virtual assistant can assist with this task.
2. Consult an Accountant: Speak to a tax professional to understand how the changes
affect your business.
3. Outsource Admin: Let Clyde Offices’ virtual assistants handle tax-related admin,
from organising receipts to scheduling accountant meetings. Learn more at Clyde
Offices Virtual Assistant.
Why Clyde Offices Supports Scottish Businesses
At Clyde Offices, we’re here to help you navigate the new tax year:
- Admin Support: Our virtual assistants can manage your tax prep tasks.
- Local Expertise: Based in Glasgow, we understand Scottish tax regulations.
- Get in Touch: Have questions? Contact us at Clyde Offices Contact.
Prepare for the 2025/26 Tax Year with Confidence
The new tax year 2025 in Scotland doesn’t have to be daunting. With the right preparation,
you can stay compliant and optimise your finances. Clyde Offices is here to support your
small business every step of the way. Start preparing today with our virtual assistant services.
We’d love to hear from you! Share this guide with a fellow Scottish business owner to help
them prepare for the new tax year!