Spring Statement 2025: What is in it?

The 2025 Spring Statement, delivered on 26 March, outlined a number of measures relevant to the self-employed, construction sector, and those operating through umbrella and intermediary companies.
 
The government reaffirmed its commitment to Making Tax Digital (MTD). From April 2028, sole traders and landlords with income over £20,000 will be brought into the MTD regime for Income Tax Self Assessment. Further expansion to those below the threshold remains under review.
 
A £625 million construction skills package was announced, with the aim of training up to 60,000 additional workers during this Parliament.
 
From April 2025, penalties for late payment of VAT and Income Tax will increase. This is part of broader efforts to improve compliance as MTD continues to roll out.
 
A formal consultation on the regulation of umbrella companies is expected in summer 2025. The government has also proposed enhanced powers for HMRC to act against tax advisers who facilitate non-compliance. This may include new enforcement tools, such as public naming.
 
HMRC, Companies House, and the Insolvency Service are increasing joint action to tackle “phoenix” companies. There is a stated target to double the amount of tax protected from such activity to £250 million by 2026–27. These measures may include making more directors personally liable for unpaid taxes.
 
Additional tax compliance measures include:
•    A new informant reward scheme, launching in 2025, designed to encourage reporting of tax evasion.
•    Expansion of HMRC’s public naming powers for promoters of tax avoidance schemes.
•    Targeted enforcement focused on under-declaration of income, electronic sales suppression, and VAT evasion by overseas sellers.
•    The government also confirmed the continuation of full expensing for plant and machinery investment until 2029.
 
In housing and infrastructure, the Spring Statement allocated £2 billion for affordable housing in 2026–27, and planning reforms were forecast to enable the delivery of an additional 170,000 homes by 2030. These reforms are projected by the Office for Budget Responsibility to increase GDP by 0.2% within the forecast horizon.