If you’re running a business, renting out property, or working for yourself, you’ve likely felt the economic pressure over the last few years. From rising costs to changing tax rules, it’s been a bumpy ride.

Now, the government’s Spring Statement 2025 sets the course for what’s ahead. While it doesn’t introduce major tax changes, it signals key shifts that could impact your profits, your payroll, and how much money you take home.

Here’s what you need to know, and how Wainwrights Accountants can help you stay ahead.

Inflation Is Falling, But Prices Are Still Tight

Good news: inflation is down from its peak, sitting at 2.8% in February 2025. But the Office for Budget Responsibility (OBR) expects it to hover at 3.2% for the year before easing off.

👉 What this means for you:
While prices aren’t rising as fast, they’re still rising. Budgeting for wage increases, supplier costs, and energy bills is still essential.

No New Income Tax or VAT Rises (But There’s a Catch)

The Chancellor announced no changes to Income Tax, VAT, or employee National Insurance in this statement.

However, if your income has gone up in the last year, you might still end up paying more tax, even without new rates. That’s because tax thresholds are frozen, dragging more people into higher tax bands (a sneaky trick called “fiscal drag”).

👉 How to respond:
Now’s the time to explore smart ways to manage your income, like pension contributions, tax-efficient salaries/dividends (for company directors), or business expenses.

Employer NICs Are Now Higher

If you employ staff (or are thinking about it), take note: the employer National Insurance rate has increased from 13.8% to 15%. And businesses now start paying this at £5,000 per employee, rather than £9,100.

👉 Why it matters:
Hiring costs have gone up. You may need to revisit salaries, pricing, and how you structure your team.

💡 Tip: We can help you explore payroll efficiencies and tax-smart alternatives like salary sacrifice or pension contributions.

£1 Billion Boost to HMRC Investigations

HMRC is getting an extra £1 billion to crack down on tax avoidance and improve its digital systems. That means more tax investigations, even for honest business owners.

👉 What you should do:
Make sure your bookkeeping is tight, your records are up to date, and you’re claiming the right expenses. Better yet, let us handle it for you.

Universal Credit Cuts & Changes

If you or your family claim Universal Credit, there are changes coming:

• The health element will be cut by 50% for new claimants.

• The standard weekly allowance will rise from £92 to £106 by 2029/30.

What’s the Government Spending Money On?

While cuts are happening in some areas, the government is investing in others:

• Defence spending is rising by £2.2 billion, with more funds going into AI and tech.

• A new £400m innovation fund has been created to support startups.

• Capital spending (e.g. infrastructure, growth projects) will rise by £2 billion a year.

• Planning reforms aim to boost GDP by 0.4% over 10 years.

What this could mean for your business:
More government investment might create opportunities if you’re in construction, tech, manufacturing or supply chain services. But even if you’re not, the ripple effects could benefit many sectors.

What Should You Be Doing Right Now?

Here are three actions every business owner or landlord should consider:

Need Help Making Sense of It All?

You don’t need to track every government announcement, we do that for you.

At Wainwrights Accountants, we help small businesses, landlords, and self-employed individuals navigate every tax change with clarity and confidence.

✅ Save tax
✅ Avoid mistakes
✅ Focus on growing your business

Let’s have a quick chat about your 2025/26 tax position. You’ll walk away with practical tips, and probably a few savings too.

📞 Call us | 💬 Get an instant quote | 📧 Email the team