Rachel Reeves' Spring Statement 2025: New Impacts for the Self-Employed and Small Business Owners

Rachel Reeves' Spring Statement: What it Means for You

The government has given an update on the economy, and things are looking a bit slower than expected this year, which could make business a bit tougher. Prices might also keep going up. Here's what's new that could affect you:

• Late Tax Returns Will Cost More: If you're late filing your VAT returns (from April 2025) or your income tax returns (from April 2026), you'll have to pay bigger penalties. For example, being just over two weeks late could mean paying 3% of what you owe, instead of 2%. Being more than a month late could mean a 10% penalty, which is much higher than before. So, it's really important to get your taxes in on time.

• More Checks on Tax Avoidance: The government is going to be working harder to find people who aren't paying the right amount of tax. They're investing in technology and hiring more people to check things. This means everyone needs to make sure their tax records are correct.

• No Big New Help for Businesses Right Now: There weren't many new schemes announced to directly help small businesses or self-employed people in this statement. The focus was more on the bigger picture of the economy.

• Welfare Changes Could Have a Knock-On Effect: There are changes happening to the benefits system, which might indirectly affect some people who are self-employed if they need support at any time.

In simple terms: The main new things to be aware of are the increased penalties for late tax returns and the government's focus on making sure everyone pays the right tax. The economy might be a bit slow this year, so it's a good idea to plan ahead.