Guiding South Yorkshire through the Spring statement 2025

Supporting businesses: Staying ahead of new tax and penalty changes

The Spring Statement highlighted a slowdown in economic growth, with the UK’s projected growth for 2025 revised down to 1.0%. For businesses, this means an increased focus on managing costs, particularly with the introduction of higher penalties for late payments and changes to tax administration.

Key tax measures announced include:

• Late Payment Penalties: From April 2025, penalties for overdue VAT and income tax self-assessments will increase. This change could affect businesses’ cash flow if they miss deadlines.
• Making Tax Digital Expansion: The scope of Making Tax Digital (MTD) will extend in April 2026 to include businesses with trading or property income over £30,000, with the threshold will further reducing to £20,000 in 2028. Businesses will need to ensure they are fully compliant with digital tax filing requirements.

With these changes in mind, Branagans is urging businesses to stay informed, plan ahead, and ensure they’re meeting new deadlines to avoid unnecessary penalties.

Supporting individuals: Understanding welfare and tax reforms

The Chancellor also announced significant welfare reforms that could affect individuals, particularly those relying on benefits like Personal Independence Payment (PIP) and Universal Credit. As eligibility criteria become stricter, individuals may see changes in the support they receive.

Expert advice and support for tax planning

Donna Branagan, Director at Branagans Accountancy Services, said: “The Spring Statement brings new challenges for businesses and individuals. We’re here to help clients manage their tax obligations and navigate changes, especially with the new penalties and welfare reforms.”

David Branagan, Director, added: “With over 30 years of experience, we provide tailored solutions to help businesses and individuals stay compliant and prepared for the changes ahead.”

Contact Branagans Accountancy Services today for expert guidance

Branagans Accountancy Services is dedicated to helping businesses and individuals navigate the complexities of taxes and financial planning. If you’re looking for advice on how the Spring Statement 2025 will impact your business or personal finances, or need assistance with tax compliance, contact Branagans’ team of experts today on: 01709 327 215 or [email protected], or visit www.branagans.co.uk