The Labour government’s latest Spring Statement introduces important updates impacting both individuals and businesses. From income tax and national insurance to wage increases and digital tax reforms, these changes could affect your financial planning and decision-making. Below, we’ve outlined key points based on your situation, with references to relevant pages in our full summary, which you can download using the link below.
I am a 'working person'
The Labour government has said it remains committed to providing security, higher levels of disposable income and higher living standards to working people.
You will see on page 4 that the taxes you will pay on your income in 2025/26 remain, in the main, at 2024/25 levels. The same can be said for employees’ national insurance contributions and VAT.
If you are paid at national minimum wage rates, you will receive a pay rise from April 2025 (page 7).
However, employers in many sectors remain under increasing financial pressure, so the scope for career and pay growth may be less than previously hoped. Costs of everyday items may also increase.
I am a business owner
If you have employees, it is important to remember the significant changes coming in from 6 April 2025 to both the national minimum wage and employers’ national insurance contributions (page 7).
If you are a sole trader, make sure you are preparing for Making Tax Digital for income tax from 6 April 2026 (page 6).
And finally, make sure you talk to us if you are starting to think about selling your business. Capital gains and inheritance tax rules (page 8) are changing, and the timing of your transaction can have a material impact on your tax liability.
I am a landlord
There are no changes to income tax and corporation tax rates on rental profits but make sure you check whether you need to prepare for Making Tax Digital for income tax from 6 April 2026 (page 6).
It is also important to keep an eye on changing stamp duty land tax rates (page 11) and the capital gains tax regime (page 8) if you are planning on buying or selling property.
My situation is different...
The UK tax rules are wide-reaching and affect individuals and entities in different ways. The above are just some simple examples. Please keep reading to see all the key Spring Statement headlines and our commentary thereon.
As always, please do reach out if we can help in providing personalised advice to you.
