The Chancellor’s Spring Statement 2025 may have been light on surprises, but there’s still a great deal for individuals and business owners to be aware of as we approach the new tax year.
At Seavor Chartered Accountants, we’ve pulled together a clear, jargon-free summary of the key points — and what they mean for you, your family, and your business.
No Major Tax Announcements – But Plenty of Change Ahead
As expected, the Chancellor held off from announcing any major new tax rises in the Spring Statement 2025 itself. However, a number of significant tax and compliance changes are already legislated to take effect from 6 April 2025, and businesses should prepare accordingly.
Key Spring Statement 2025 Announcements
- No new tax increases were announced.
- The government aims to recover £7.5bn annually by tackling tax avoidance and evasion.
- Plans include recruiting 5,000 new HMRC inspectors over five years — likely leading to more tax enquiries and record checks.
- UK economic growth for 2025 downgraded to 1%, but projections improve from 2026 onwards.
- Increased spending on:
- Defence: £2.2bn (partly funded by cutting foreign aid)
- Affordable housing: £2bn
- Capital investment: £2bn
- Construction training: £600m
- The previously reported £9.9bn fiscal headroom has largely been absorbed by global pressures — now equating to less than 1% of UK government spending.
- UK inflation is currently 2.8%, still a key concern for businesses facing rising wage and tax costs.
Tax & Compliance Changes from 6 April 2025
While the Spring Statement 2025 was light on immediate policy shifts, the new tax year brings a range of changes affecting businesses and individuals.
1. National Minimum Wage & Employer NIC Increases
- 21 and over: £12.21/hour (↑ 6.7%)
- 18–20 year olds: £10/hour (↑ 16.3%)
- Apprentices: £7.55/hour (↑ 18%)
Employer’s National Insurance is also increasing:
- Rate: 15% (up from 13.8%)
- Threshold: Drops from £9,100 to £5,000
- This adds a minimum of £615 per employee in additional cost
The Employment Allowance increases from £5,000 to £10,500 — helpful for many small employers, but not all businesses will benefit.
Seavor Tip: Prepare a 12-month budget forecast to understand the effect of wage and NIC increases on your profitability and cash flow.
2. Business Rates Relief Reduced
Retail, hospitality, and leisure businesses will see relief reduced from 75% to 40% — resulting in a significant rates increase for many.
3. Double Cab Pickup Rule Change
From April 2025, newly purchased double cab pickups will be taxed as cars rather than commercial vehicles. Existing pickups retain their commercial status until April 2029.
4. Income Tax & Dividends
- Personal Allowance: £12,570
- Higher Rate threshold: £50,270
- Rates and thresholds frozen until 2028
- Dividend Allowance: Still just £500 (down from £5,000 in 2016)
- Note: Scottish taxpayers remain on different bands and rates
5. Capital Gains Tax & BADR Changes
- CGT (from Oct 2024): 18% basic rate, 24% higher rate
- Business Asset Disposal Relief (BADR):
- 14% from April 2025
- 18% from April 2026
- Lifetime limit remains £1 million
6. Inheritance Tax Updates
- Nil-rate band: £325,000 (frozen to 2030)
- Can increase to £500,000 if a home is passed to a direct descendant
- From 2027: Inherited unspent pensions will be subject to IHT
- From 2026:
- First £1m of business or agricultural property: 100% relief
- Amounts over £1m: 50% relief (resulting in an effective 20% IHT)
These changes have already raised concerns, particularly among family businesses and farmers.
How We Can Help
Even with no headline tax rises, the changes already on the way will have a real financial impact on both employers and individuals.
At Seavor Chartered Accountants, we’re helping clients to:
- Review wage structures and payroll budgeting
- Prepare for increased employment costs
- Plan remuneration strategies
- Manage profit, cash flow, and investment plans
- Assess IHT, CGT, and succession planning
Need Help Planning for 2025?
If you are unsure how these changes apply to your business or want to talk through your options, we’re here to help.
Contact the team at Seavor Chartered Accountants today for clear, friendly advice tailored to you.
