Spring Statement 2025: Key Takeaways for Business Owners
By
Diane Amey

Chancellor Rachel Reeves’ Spring Statement 2025 reaffirmed existing fiscal policies without introducing major new measures. For business owners, the focus remains on tax changes, compliance tightening, and digital reporting requirements. Read our key takeaways for business owners. 

Contractor PAYE Reform

  • From April 2026, agencies and end-clients will be responsible for PAYE compliance for contract and freelance workers. Businesses must review contracts to avoid misclassification risks.

Tax and Compliance Updates

  • No new business taxes announced in the Spring Statement 2025, but HMRC will increase compliance checks on VAT, PAYE, and Corporation Tax. Expect stricter penalties for late or inaccurate filings.
  • Employer National Insurance rises from 13.8% to 15% from April 2025, with the earnings threshold cut to £5,000. The Employment Allowance increases to £10,500, easing costs for SMEs.
  • Capital Gains Tax now stands at 18% (basic rate) and 24% (higher rate). Business Asset Disposal Relief shifts to 14% in 2025, rising to 18% in 2026. Investors’ Relief lifetime cap drops to £1 million.

Making Tax Digital & VAT

Making Tax Digital (MTD) stays on track:

  • From April 2026, it applies to self-employed individuals and landlords earning over £50,000.
  • From April 2027, the threshold drops to £30,000.
  • By April 2028, it will apply to those earning £20,000+.
  • VAT threshold remains £90,000. Corporation Tax stays at 25% for profits exceeding £250,000.

Inheritance Tax & Property Reforms

  • Business and Agricultural Property Relief capped at £1 million from April 2026, with relief halved for amounts above. Unused pension pots may face Inheritance Tax from 2027.
  • Stamp Duty Land Tax surcharge on additional properties rose from 3% to 5% in late 2024. Multiple Dwellings Relief abolished.
  • Furnished Holiday Lettings tax regime ends in April 2025, shifting properties to standard rental taxation.

What’s Next?

With rising payroll costs, stricter tax enforcement, and evolving compliance regulations, businesses need a recruitment partner that keeps them ahead. We help clients manage employment costs, navigate contractor compliance, and adapt to shifting tax rules. Now is the time to review hiring strategies, ensure payroll compliance, and optimise workforce planning to stay competitive.

 Talk to us today for advice. 

More about the Spring Statement 2025: Gov.uk

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