The Chancellor of the Exchequer, the Rt Reeves MP, delivered her Spring Statement speech on 26th March, outlining the government’s plans to security, reform the state, and stimulate growth.
The following key announcements from the Spring Statement will impact you and your business.
- High Income Child Benefit Charge (HICBC) : Starting in summer 2025, eligible employees who incur liability for the HICBC will be able to report family’s Benefit payments via a digital service and pay the HICBC directly through adjustments to their PAYE tax without the need to register for Self-Assessment.
- Making Tax Digital (MTD) for Income Tax : Starting in April 2026, sole traders and landlords with qualifying income over £50,000 will need to comply with MTD. This will extend to those earning over £30,000 in April 2027 and further to those earning over £20,000 in April 2028.This decision aims to help businesses adopt digital ways of working, boosting productivity and growth. It also ensures that the 900,000 sole traders and landlords joining MTD in 2028 have sufficient time to prepare. The government is exploring ways to bring the benefits of digitalization to the 4 million sole traders and landlords with income below the £20,000 threshold. The following groups will not be required to join MTD for Income Tax over the course of this Parliament:
- ministers of religion
- Lloyd’s Underwriters
- recipients of the Married Couples’ Allowance
- recipients of the Blind Persons’ Allowance
- The Research and Development (R&D) consultation is open for feedback on expanding the use of advance clearances in R&D reliefs. This consultation aims to explore options to reduce errors and fraud in the reliefs, and to provide certainty to businesses. Feedback is welcome until 26 May 2025.Information on all the Spring Statement measures announced can be found in the Spring Statement 2025 page on GOV.UK
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