Rachel Reeves’ Spring Statement brings few surprises but confirms that key tax and compliance changes are going ahead as planned.
Key points for you as a business owner:
- No new business taxes, but HMRC will step up compliance checks. Make sure your VAT, PAYE, and Corporation Tax submissions are accurate and on time. Consider digital systems and possibly Tax Investigation Insurance.
- Employer NIC is increasing to 15% from April, and the threshold is dropping. Payroll costs will rise, but the Employment Allowance goes up to £10,500, which will help many SMEs.
- CGT changes confirmed: The basic rate is now 18%, higher at 24%, and Business Asset Disposal Relief changes to 14% in April, rising to 18% in 2026. Timing matters if you’re planning to sell a business or shares.
- Making Tax Digital stays on track. If you haven’t moved to digital yet, now’s the time.
- No change to VAT or Corporation Tax, and capital allowances (full expensing + £1m AIA) still available for growth investments.
- IHT updates from 2026 limit BPR/APR to £1m and cut relief to 50% beyond that. Pensions may also be taxed post-2027. Start estate planning early.
- Landlord changes: SDLT surcharge now 5%, Furnished Holiday Lettings regime ends April 2025, and Multiple Dwellings Relief is gone. This could impact yield and strategy.
- PAYE reform for contractors kicks in April 2026 — agencies and clients will take on more responsibility.
Helpful Articles for MTD and Payroll Updates
Making Tax Digital: Key Changes from April 2026 : ammu
Changes to NIC Rates & Thresholds: What This Means for Your Business : ammu
Year-End Tax Checklist: What to Do Before the 6 April Deadline : ammu
Takeaway: April will bring real impacts — higher NICs, tighter compliance, and key relief changes. Review systems, tax plans, succession strategies, and digital readiness now.
Let’s talk if you need help getting ahead of this.