Chancellor Rachel Reeves has delivered the Spring Statement for 2025, offering few surprises but reinforcing key points for business owners. Instead of headline announcements, the statement underlined that existing plans are on track and major changes are already in motion following the Autumn Budget. For those running businesses, it’s a timely reminder that April brings confirmed tax adjustments and compliance measures. 

No new business taxes — but more compliance checks 

No additional business taxes were announced. However, HMRC has been given more funding to strengthen compliance systems. Business owners should expect greater scrutiny around VAT, PAYE and Corporation Tax. Digital record-keeping requirements will be more closely monitored, and penalties for late or incorrect submissions will be tougher. If your business is still relying on manual processes, now is the time to review your systems and to consider Tax Investigation Insurance to help guard against the costs and stress of an enquiry by HMRC.

Employer National Insurance rates are rising 

From April 2025, employer National Insurance will rise from 13.8% to 15%. The earnings threshold will reduce from £9,100 to £5,000. However, the Employment Allowance will increase to £10,500 and will be more widely accessible. For many SMEs, this will mean higher payroll costs, particularly for those expanding their teams. 

Capital Gains Tax and Business Asset Disposal Relief 

The increases announced in the Autumn Budget have been confirmed. The basic rate of Capital Gains Tax is now 18%, with higher and additional rates set at 24%. Trustees and personal representatives are also subject to the 24% rate. Business Asset Disposal Relief will change further, with a 14% CGT rate from April 2025, increasing to 18% in 2026. The lifetime cap for Investors’ Relief has been significantly reduced from £10 million to £1 million. If you are planning to sell a business or shares, careful timing could make a big difference to your tax bill. 

Making Tax Digital is staying on schedule 

Although not a headline focus today, the Making Tax Digital timeline remains unchanged. From April 2026, it will apply to landlords and the self-employed earning over £50,000. In April 2027, the threshold will reduce to £30,000, and by April 2028 it will drop again to £20,000. Quarterly digital submissions will become mandatory. If you are still relying on spreadsheets, it is worth preparing now. 

VAT, Corporation Tax, and capital allowances 

There are no changes to the VAT threshold, which remains at £90,000. Corporation Tax stays at 25% for profits over £250,000. Full expensing and the £1 million Annual Investment Allowance continue to be available for qualifying investments. These reliefs remain valuable for businesses looking to invest and grow. 

Inheritance Tax changes confirmed for 2025 and 2026 

From April 2026, a £1 million cap will apply to Business Property Relief and Agricultural Property Relief. Relief will drop to 50% on amounts above this threshold. Additionally, from April 2027, unused pension pots may fall within the scope of inheritance tax. These changes will impact succession planning and estate management, so early action is advisable. 

Property and landlord updates 

The Stamp Duty Land Tax (England and Wales) surcharge on additional properties rose from 3% to 5% in late 2024, applying to completions in 2025. Multiple Dwellings Relief has been abolished. The Furnished Holiday Lettings regime will end in April 2025, with such properties taxed as standard rentals. This will affect investment returns and exit strategies for landlords. 

There has been no specific changes announced regarding Scotland’s Land and Buildings Transaction Tax (LBTT). 

PAYE reform for contractors and agencies 

From April 2026, agencies and end-clients will become responsible for PAYE compliance for umbrella workers. This change aims to tighten enforcement across labour supply chains. Contractors and intermediaries should begin reviewing their arrangements now to prepare. 

What this means for business owners 

The Spring Statement confirmed that significant changes are coming from April, alongside higher compliance expectations. Whether it is preparing for increased payroll costs, reviewing succession plans, moving towards digital record-keeping or rethinking property investments, it is important to act now. For tailored support in understanding these updates or planning ahead, speak to your local bk plus advisor today.