The much anticipated Spring Statement 2025, delivered by Rachel Reeves on 26 March, has brought a host of changes affecting a wide range of individuals and businesses.

Prior to the statement, public sector workers, the youth and those on benefits had been put on notice as to the pending changes. 

In this article we’ll be covering the changes that impact self-employed individuals, high earners, landlords and business owners alike.

Tax changes and impacts from the Spring Statement 2025

Personal tax

The government has announced plans to expand the group of self-employed individuals and landlords impacted by Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA). 

Starting from April 2026, those with income over £50,000 will be required to comply with MTD ITSA. Self-employed individuals and landlords earning over £30,000 will follow in April 2027, and those earning above £20,000 will be included from April 2028.

For more information on how the new rules will affect you, check out our comprehensive guide on MTD ITSA.

While this is a big update, there are also plans for future changes, though full details were not provided in the Spring Statement. 

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Late payment penalties (VAT and ITSA)

From April 2025, penalties for late payments will increase for both VAT and Income Tax Self Assessment taxpayers. 

The new rates will be as follows:

• 3% of the outstanding tax if it's overdue by 15 days or more.
• 3% when overdue by 30 days plus.
• 10% per annum when overdue by 31 days or more.

These changes are part of the government’s efforts to encourage timely payments and work to reduce the number of overdue tax bills. 
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Capital gains

There will be a coordinated effort between HMRC, Companies House and Insolvency Service to tackle those abusing the company closure process (Phoenixism) to evade tax and write off debts. The new measures will include making directors personally liable for company taxes.  

This is set to be part of a broader crackdown on individuals who are trying to escape their financial responsibilities by avoiding paying the taxes they owe. 
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High Income Child Benefit Charge

From Summer 2025, employees and directors who only need to pay the High Income Child Benefit Charge will be able to report and pay it through a new digital portal via PAYE. This means they won’t have to file a Self Assessment, unless they are also self employed. 

This is likely to be a welcome change for high earners who are currently having to file a Self Assessment yearly. 

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Wrapping up key takeaways from the Spring Statement

The Spring Statement 2025 brings several important changes for high earners and the self-employed. While the Chancellor acknowledged that these updates may require some adjustments, they’re part of a larger plan to streamline processes and improve tax compliance across the board.

As these changes roll out over the next few years, staying informed and prepared will help you stay ahead of the curve. At Crunch, we’re here to guide you through these shifts and ensure that your tax affairs remain in order.

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