Published: 16/04/2025 By Michelle Tompson
Spring has officially sprung, and so has the latest Government update! With the recent Spring Budget announcement, there’s a lot to unpack, from tax updates to economic forecasts. But don’t worry, we’ve done the heavy lifting for you. Here’s what you need to know:Spring Statement Highlights – The Key Takeaways
The Chancellor’s Spring Statement included some important changes that could impact your business and personal finances. Here are some key points:
- Tax Changes: There are updates to National Insurance thresholds, potential reliefs, and changes to allowances.
- Support for Businesses: From energy cost support to investment incentives, there may be opportunities to help your business grow.
- Economic Outlook: Inflation remains a challenge, but there are government measures to help businesses and households navigate these pressures.
HMRC Tax Enquiries on the rise – Are You Protected?
HMRC has been given more funding to step up tax investigations. This means more businesses and individuals could be subject to tax enquiries, even if you’ve done nothing wrong. The cost of defending yourself in an investigation can be high, but our Fee Protection Service ensures you won’t be out of pocket if HMRC comes knocking.
Why it matters:
- Tax investigations are time-consuming and stressful but with our support, we take the hassle off your shoulders.
- Our fee protection service covers the costs of professional advice and representation in the event of an HMRC enquiry.
- Peace of mind knowing that you're prepared, just in case!
We know running a business is no small feat, and staying on top of regulatory changes can feel overwhelming. Here’s a closer look at some other key areas to focus on this year:
Making Tax Digital (MTD) – Are You Ready?
If you haven’t already made the transition, now is the time to act. The government’s MTD initiative is being rolled out across more businesses, with VAT-registered businesses already required to comply. Next in line are self-employed individuals and landlords with income over £50,000 from April 2026, followed by those earning over £30,000 in 2027.
What this means for you:
- Paper records and manual submissions will no longer be an option, digital software is a must!
- Submissions to HMRC will need to be made quarterly, instead of just once a year.
- You may need to switch to compliant accounting software (we can help with recommendations and setup!).
Tax Efficiency – Smart Strategies to reduce your liability
Paying tax is unavoidable, but overpaying isn’t! There are plenty of legitimate ways to reduce your tax bill while keeping your finances compliant.
- Utilise tax-efficient investments – Consider ISAs, pensions, and SEIS/EIS schemes.
- Take advantage of business reliefs – R&D tax credits, capital allowances, and small business rates relief can all help.
- Structure your income efficiently – Salary, dividends, and benefits should be balanced to optimise tax efficiency.
- Family tax planning – Spouse and children’s tax allowances can sometimes be used to your advantage.
Audits – Why they matter & how to prepare
An audit might sound daunting, but it’s actually a great way to get a health check on your business. Whether it’s a statutory requirement or just a voluntary review, an audit provides valuable insights into your financial standing.
Why audits are beneficial:
- They ensure compliance with financial regulations and reporting standards.
- They can help detect financial inefficiencies, fraud, or errors.
- They give credibility to your financial statements, which can be beneficial if you’re seeking investors or loans.
- Keep records well-organised and up to date.
- Ensure you have clear financial controls and processes in place.
- Work with professionals (like us!) to prepare in advance and avoid last-minute stress.
We’re always here to help with tax planning, business advice, and all things finance-related. If anything in this blog raises questions, give us a call or email us at bsg@turpinba.co.uk