The Chancellor’s Spring Statement (not a budget!).
You may have noticed(!) that things do not seem to be going as planned by the Government as far as the economy is concerned. Having told us that there would be only one Budget each year, our Chancellor wasn’t able to make any tax changes in last week’s Spring Statement and so instead announced ‘measures’ such as sacking civil servants and cutting benefits.
However, the measures that the Chancellor announced in the Autumn Budget will be coming into effect from 6th April so it is worthwhile reminding ourselves of what these will be. There are a LOT!
Our Spring Statement Summary Newsletter goes into detail on these and is well worth a read. The Newsletter can be downloaded using the link below
The Newsletter contains information on:
Increases in company car benefits
increases in Employers NIC..
Increases in CGT rates for what used to be known as Entrepreneur’s relief.
Increases in VAT late payment penalties
The ending of the (tax advantaged) Furnished Holiday Lets tax regime.
Unused pension pots to suffer IHT from April 2027
And much more!
Interesting….
As you will be aware, HMRC charge interest on late payment of tax. They also pay interest on tax that has been overpaid and is then repaid. There has always been a difference between the two rates which has, historically been around 3.5% So HMRC might charge 5% on late payments and pay 1.5% on repayments.
From 6th April 2025, this difference will be 5%. What this means is that from 6th April 2025, the rate of interest charged by HMRC on late payment will be 8.5% with the repayment rate 3.5%. The late payment rate has not been higher than that this century. It’s more important than ever to make tax payments on time if you can.
If you have any questions, on anything, don’t hesitate to contact us below: