The Spring Statement 2025 tax measures, announced by the Chancellor on 26 March 2025, contain no changes to the main rates of income tax, National Insurance or VAT. Instead, the Spring Statement document concentrates on tax compliance, setting out a package to further close the tax gap and raise over GBP 1 billion in additional gross tax revenue a year by 2029 to 2030.
Corporate INTL Newsroom · Tax
Spring Statement 2025 Tax Measures Focus on Closing the Tax Gap
By The Corporate INTL Newsroom · 27 March 2025
The fiscal context is tight. The Office for Budget Responsibility now forecasts growth of 1.0% in 2025, slower than expected in October, rising to 1.9% in 2026. Following policy changes, the OBR forecasts a current budget surplus of GBP 9.9 billion in 2029 to 2030, restoring headroom against the stability rule to the level held at the Autumn Budget.
Compliance and debt collection
The document reports that the stock of tax debt owed to HMRC was over GBP 44 billion at the end of December 2024, more than double the level five years earlier, with around GBP 20 billion more than 12 months old. The government will invest in HMRC's debt management capacity, including a pilot to collect older debts and more automated recovery, and fund 500 more HMRC compliance staff on top of the 5,000 announced at the Autumn Budget.
Making Tax Digital and penalties
- Making Tax Digital: Making Tax Digital for income tax Self Assessment will be extended to sole traders and landlords with qualifying income over GBP 20,000 from April 2028.
- Late payment penalties: late payment penalties will increase for VAT taxpayers and for income tax Self Assessment taxpayers as they join Making Tax Digital from April 2025 onwards, to encourage payment on time.
Four consultations
Alongside the Spring Statement publication, the government published consultations on how HMRC can make better use of third-party data to increase automation and close the tax gap, on strengthening HMRC's powers against tax advisers who facilitate non-compliance, on a package of measures against promoters of marketed tax avoidance, and on options to simplify and strengthen inaccuracy and failure to notify penalties.
Who is affected
Sole traders and landlords with qualifying income over GBP 20,000 now have a date for joining Making Tax Digital, and taxpayers who pay late face higher costs. Tax advisers and scheme promoters should review the consultations closely, as the proposals could expand HMRC's powers and sanctions against intermediaries. Businesses with outstanding tax debts should expect more active and more automated collection activity from HMRC.
Sources
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