What did the Spring Statement really mean for your business?

26 March 2025

This year’s Spring Statement didn’t bring any big surprises for business owners – but that’s not to say there’s nothing to think about. The update was more of a steady progress check than a moment for new announcements, confirming that the government’s current plans are staying firmly on track.

The main takeaway? The bigger tax changes affecting businesses were already set out last autumn – and many of those will come into play from 6 April, when the new tax year begins.

In this article, we’ve pulled together what matters most for business owners and the self-employed – from what was (and wasn’t) said in the Spring Statement, to the confirmed changes you’ll need to be ready for in the months ahead.

No new business taxes – but more focus on compliance

The Spring Statement didn’t introduce any new taxes for businesses, but it did confirm that HMRC will receive more funding to improve compliance and modernise its systems.

While this won’t affect your tax bill directly, it does mean businesses can expect more focus on accurate reporting, particularly across VAT, PAYE and Corporation Tax. With digital record-keeping already a key part of Making Tax Digital, this investment reinforces the direction of travel: better systems, more scrutiny, and less tolerance for errors.

National insurance increases still going ahead

Nothing new was added in the Statement, but one of the biggest cost changes for employers is just around the corner. From 6 April, the rate of employer National Insurance Contributions (NICs) will rise from 13.8% to 15%, and the threshold for contributions will drop from £9,100 to £5,000.

This means employers will pay NIC on more of their payroll – and at a higher rate. However, the Employment Allowance is increasing to £10,500, and eligibility is widening, which will help ease the pressure for smaller businesses.

Changes to Business Asset Disposal Relief (BADR)

The tax you’ll pay on selling a business is also going up this April. While the Spring Statement didn’t revisit this, the government has already confirmed that the BADR rate will rise from 10% to 14% from 6 April 2025. A further increase to 18% is planned for 2026.

If you’re thinking about selling a business or shares in the near future, it’s worth considering how this will affect your plans.

Making Tax Digital still on the horizon

MTD wasn’t mentioned in the Spring Statement, but it’s very much in motion. From April 2026, landlords and self-employed individuals with income over £50,000 will need to keep digital records and send quarterly updates to HMRC.

While nothing changes just yet, the year ahead is a good opportunity to start preparing – especially if you’re still using paper records or spreadsheets.

VAT and Corporation Tax – no changes to rates or thresholds

The VAT threshold stays at £85,000, and the Corporation Tax rate remains at 25% for companies with profits over £250,000.

There were no updates to these areas in the Spring Statement, and the Autumn Budget confirmed that these figures will stay fixed for now. For businesses investing in equipment, full expensing and the £1m Annual Investment Allowance are still available, offering useful reliefs for capital spending.

Inheritance Tax: Changes to Be Aware of from April 2025

Changes to inheritance tax are already on the way, with updates to certain reliefs and allowances confirmed for April 2025. This includes the removal of tax advantages for furnished holiday lets and adjustments to how agricultural and business property reliefs are applied.

For those involved in administering estates, these changes could affect how liabilities are calculated and what qualifies for relief. If you’re currently managing an estate or expect to in the near future, it’s worth reviewing these updates ahead of time.

Landlords: SDLT surcharge now higher, Holiday Let Relief ending

While not covered in the Spring Statement, landlords should be aware that the Stamp Duty Land Tax surcharge on second and buy-to-let properties increased from 3% to 5% in late 2024. This remains in place for any purchases completing in 2025.

Also from April 2025, the Furnished Holiday Lettings tax regime is being scrapped, meaning holiday lets will now be taxed the same as regular rental properties – potentially resulting in higher tax bills and the loss of certain CGT reliefs.

Contractors and Agencies: PAYE Reform Coming in 2026

The Spring Statement confirmed that the government is pressing ahead with plans to reform how umbrella company workers are taxed. From April 2026, the responsibility for ensuring PAYE is operated correctly will sit with the agency or end-client, depending on the arrangement.

While this won’t take effect until next year, it’s a sign that compliance in the contractor space will continue to tighten – and agencies may want to begin reviewing how these changes could impact their current set-ups.

Looking Ahead

While the Spring Statement didn’t bring new announcements for business owners, it’s clear that the government’s plans are moving full steam ahead. With tax and compliance changes already lined up for April, now’s the time to check you’re prepared – whether that’s reviewing your payroll setup, planning a future business sale, or starting to think about digital record keeping.

If you’re unsure how the changes might affect your business – or want to talk through anything specific – we’re always happy to help.

You can also read our Autumn Budget article for a fuller picture of what’s coming into effect from April 2025.

Get in touch with Simon & Co for practical, tailored support that makes your finances easier to manage.