Spring Statement 2025
Very little was shared in the Chancellor’s Spring Statement yesterday, and although we sat poised with pen and paper listening to every word of her speech, the real detail is always in what is released thereafter.
Although there wasn’t any significant changes to tax rates, thresholds or allowances, the devil is always in the detail and we highlight below the key points to come out of this Spring Statement:
Making Tax Digital (MTD) will continue to be applicable to sole traders and landlords and there is no change to the existing start date of April 2026 for those with gross qualifying income of £50k or more and £30k+ from April 2027. What has changed now is that this income threshold will be reducing to £20k from April 2028 bringing more small businesses and landlords into the scope of MTD.
There is much talk of increased funds being given to HMRC to tackle tax evasion and HMRC will be given more powers of investigation so we may be likely to see more enquiries being initiated.
This government have made it clear that the burden sits with the taxpayer and whereas in the past low interest rates on late payments on tax meant that HMRC were always pushed to the back of the queue, now with interest rates rising to near 9% for late payment of tax, there will also be an increase in late payment penalties applied, increasing penalties from 5% up to 10%.
There will be changes introduced for those subject to the High Income Child Benefit Charge (HICBC) enabling those in PAYE positions to have this repaid via PAYE rather than have the aggravation and cost of filing a tax return. Although this may seem easier, it will be down to the taxpayers to initiate which could still lead to unnecessary investigations from HMRC for those taxpayers who are none the wiser on this tax charge.
As we get more detail, we’ll be adding to this and our information bank, so do get in touch if you are concerned about the impacts on you.
FUSE is an independent Chartered Certified firm of accountants and tax advisors based in Highgate Village, North London. We provide a dynamic range of services to clients working in property, media, entertainment and professional services. Our clients vary in size from self employed sole traders, small enterprises and medium size businesses. We believe that comprehensive financial planning and sound business financial advice are the keys to growth and profitability.
