The Chancellor just delivered her Spring Statement, and while there were no big fireworks, there’s still a fair bit to unpack. Here's your easy-to-read, no-nonsense guide to what it all means for your business.

So, How’s the Economy Looking?

Not amazing, but not end-of-the-world either. The Office for Budget Responsibility (OBR) has revised its forecasts and… let’s just say they’re feeling a little less chipper than they were in the autumn. Here’s the gist:

• Growth is slowing: The economy is now expected to grow just 1% this year (down from the previously predicted 2%).
• Inflation’s still hanging around: It’s forecast to average 3.2% this year—up from 2.6%. The good news? It’s expected to drop to 2% by 2027.
• Public finances are wobbly: Without a few changes, we’d be veering off target. But don’t panic—the Chancellor’s made some tweaks to steer us back on course.

Any Big Tax Changes?

Nope! Breathe easy—at least for now. The Chancellor stuck to her promise of one big fiscal event a year, so don’t expect major tax updates until the Autumn Budget 2025. In the meantime:

• No surprise tax rises (yay).
• Some cuts to public spending (less yay).
• Big focus on growing the economy, especially through homebuilding and infrastructure.

Business Bits You Should Know About

Here are the things that might actually affect your day-to-day:

1. Making Tax Digital (MTD) is expanding

If you’re self-employed or a landlord earning over £20,000, you’ll be brought into the MTD for Income Tax club from April 2028. That means:

• Digital records
• Quarterly updates to HMRC
• No more free HMRC filing options (you’ll need software)

Need help adjusting? We’ve got your back.

2. Business rates reform is (slowly) moving

An interim report is coming this summer, with more juicy details in the autumn. For now, sit tight.

3. R&D tax relief is getting a revamp

HMRC is cracking down on incorrect claims. They’re consulting on making upfront assurance checks mandatory and potentially adding a £25,000 minimum spend. So, if you’re dabbling in R&D, you might want to get advice early.

4. Phoenixism changes

No, not a Harry Potter spell. It’s when directors shut down a business to dodge tax, then pop up again with a new one. HMRC’s coming for them—with more personal liability and potential upfront tax payments for new companies.

Coming Soon: Landlord Rules & Energy Ratings

If you rent out property, watch this space. The government wants all private rentals to hit EPC C by 2030. The upgrade could cost up to £15,000 per property (ouch), but support schemes are being proposed. Consultation’s open until 2 May 2025—worth having your say.

April 2025: Payroll Costs Are Going Up

A quick heads-up on some confirmed changes kicking in soon:

National Minimum Wage

Employers’ National Insurance

• The rate’s jumping to 15% (from 13.8%)
• It kicks in on earnings over £5,000 (previously £9,100)

Most payroll software should auto-update, but double-check. Not sure how this impacts your payroll bill? Give us a shout.

Public Procurement Just Got Easier (Really!)

The Public Procurement Act 2023 is now live. What does that mean for small businesses?

• More opportunities to win government work
• A shiny new Central Digital Platform to find contracts
• 30-day payment terms are now mandatory (no more waiting forever to get paid)
• Bad suppliers beware: underperformance could mean being banned from future contracts

If you’ve never thought about bidding for public sector work, now might be the time.

Final Thought

While some of us were hoping for a U-turn on those April NI increases (no such luck), there’s still a lot here worth knowing—and a few positive changes in the mix. If any of these updates leave you scratching your head or wondering what to do next, just get in touch. We’re always happy to translate budget speak into plain English (and maybe sneak in a biscuit or two while we do it).

Categories: Positive Accountant