Spring Statement 2025
A brief summary
The statement content may affect your business here are the key points
Serious move to close the tax gap (namely historically unpaid historical tax) Expect a much more aggressive approach in the coming months and years. This includes investment in using automated tax liability recovery systems.
Here is a recap on previous announcements
- Tax thresholds frozen until 2028 (your personal allowance)
- Inheritance tax threshold frozen until 2030
- National living wage from April 2025 increases to £12.21
- Employers National Insurance Contributions increase from 1.2% to 1.5% April 2025
- Business assets disposal relief increases to 14% April 2025
- Furnished Holiday lettings tax regime abolished
- Increase in late payment penalties for late payment of VAT, MGD and personal tax. 3% charge on late payments of more than 15 days plus 3% where tax is overdue by 30 days
Making Tax Digital
This long-awaited change to the tax reporting system will be rolled out from April 2026 and will apply to all sole traders and landlords with an annual turnover of over £50,000 and from April 2027 turnover of £30,00. Partnerships will follow in time.
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The Author:
Paul Hayhoe
Senior Fellow Member, Association of Accounting Technicians (FAAT)
Paul qualified as an accounting technician (AAT) in 2005 and as a Licensed Member in Practice, his work is regulated on an annual basis through the AAT.
Paul is a hospitality industry insider with hands-on experience of the challenges and joys of running a hospitality business. He’s also very much a people person who pulls out all the stops to ensure his clients’ success.