Welcome to a short note on today’s Spring Budget statement and a quick reminder of the previously announced tax changes that will come into force next week.
The Spring Statement:
Rachel Reeves delivered her second fiscal statement today following the tax raising Autumn 2024 budget. Thankfully there were no more significant announcements on small business taxation, at least not that will happen imminently. The main announcements were on benefit cuts, cuts in the civil service, an increase in defence spending and some spending on infrastructure projects and training.
The few concrete tax measures mentioned were:
- A further crackdown on tax evasion through the use of new technology at HMRC
- Thresholds and allowances will continue to be frozen.
- New consultation on advance clearance for R&D tax claims
- An increase in penalties for late payment of tax under “Making Tax Digital”.
- A lowering of the threshold for joining MTD (Making Tax Digital) from April 2028 to £20,000 of self employment income or rental income.
The full Spring Statement can be found here: https://www.gov.uk/government/publications/spring-statement-2025-document
Reminder of Main Upcoming Tax Changes:
As we have noted previously these are the main tax and regulation changes announced in the Autumn that are starting in the new tax year on 6th April:
- National Living wage rising to £12.21 an hour:
- Employer’s NIC raised to 15%:
- Tax rate after BADR (business asset disposal relief) on selling a business rises to 14% (and 18% from 6th April 2026).
- Furnished Holiday Cottage rules abolished.
If you have any questions about any of these changes please do not hesitate to get in touch here.
