This article provides an in-depth look at the latest UK tax updates for July 2025, their impact on businesses, and how TaxoMonk, a leader in outsourced tax and accounting services, is uniquely positioned to help companies stay compliant and efficient.

🔍 Key UK Tax Changes in July 2025

1. Crypto-Asset Reporting Framework (CARF) Implementation

From January 1, 2026, the UK will adopt the OECD’s Crypto-Asset Reporting Framework. This imposes new data collection and reporting requirements on crypto exchanges and wallet providers. HMRC will receive detailed records of digital asset transactions to combat evasion.

What it means for businesses: If you’re involved in crypto transactions—even indirectly—you must begin preparations now. Non-compliance could lead to heavy penalties and scrutiny.

2. ISA Regulatory Updates

Effective 15 July 2025, HMRC introduced significant ISA changes:

• EEA and overseas fund recognition extended through 2026.
• National Insurance number mandatory for all ISA subscriptions from April 2027.
• Clarification on ISA withdrawal and reinvestment flexibility.

Why it matters: These updates affect investment planning and tax efficiency strategies for businesses and high-net-worth individuals.

3. Abolition of the Remittance Basis

From 6 April 2025, the remittance basis for non-domiciled individuals has been abolished. Capital gains now fall under the arising basis, increasing tax exposure for non-doms.

Key impact: Companies with international employees or clients need to reassess their tax strategy urgently.

4. Official Interest Rate Raised to 3.75%

HMRC has raised the official interest rate for benefits-in-kind and employee loans to 3.75% from 6 April 2025. This directly affects calculations for company car tax, low-interest loans, and other fringe benefits.

5. Updated Employer and Employee Thresholds

For tax year 2025–26:

• Personal allowance remains at £12,570.
• NIC primary threshold is £242/week.
• Employer NIC rate increased to 15%.
• Employment Allowance raised to £10,500.

6. Under-Taxed Profits Rule (UTPR) Enforced

From accounting periods starting 31 December 2024, the UTPR (part of Pillar Two global tax reform) ensures large multinationals pay a minimum 15% corporate tax. This replaces the ORIP rules.

7. Deadline Reminders

• P11D and P11D(b) forms due by 6 July 2025.
• Employers must also submit employee share scheme reports.

📉 Fiscal Outlook: Growing Pressure on UK Businesses

Following the July rollback of welfare reforms, the UK government faces a £5 billion shortfall. Chancellor Rachel Reeves has ruled out immediate increases in income tax, NI, or VAT—but alternative options like threshold freezes, wealth taxes, and fuel duty hikes are on the table.

This uncertain fiscal climate makes tax planning and proactive compliance more important than ever.

🧠 How TaxoMonk Helps Navigate These Tax Changes

TaxoMonk is a professional accounting and financial services firm that specialises in UK tax compliance, cloud-based bookkeeping, payroll, and crypto-asset advisory. Whether you’re a startup, SME, or large corporation, our tools and expertise help you stay one step ahead.

🧩 Why Businesses Choose TaxoMonk🔹 AI-driven automation🔹 Cloud-based reports & alerts🔹 HMRC deadline reminders🔹 UK + global tax expertise🔹 Affordable outsourcing for small to mid-sized firms

✍️ Final Thoughts

July 2025 brings one of the most dynamic shifts in the UK tax regime—especially for crypto-related entities, multinational businesses, and those with complex payroll systems. These updates, while necessary, are intricate and time-sensitive.

With TaxoMonk, you’re not just reacting—you’re anticipating.

Stay compliant. Stay competitive. Stay with TaxoMonk.

for more details please visit www.taxomonk.com

📞 +44 203-479-5370

📧 Email: Biz@taxomonk.com

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