Monthly Business Newsletter – April 2025

Welcome to our latest newswire! Stay informed with the most important updates affecting businesses, landlords, and employers across the UK. If you have any questions, feel free to contact EOACC for expert advice.

April 2025

Spring Statement 2025 and OBR Forecasts: Key Business Insights
How will your business be affected?
The Chancellor of the Exchequer, Rachel Reeves, recently delivered the Spring Statement 2025, outlining economic policies, tax updates, and financial strategies for the UK. These changes will have significant implications for small businesses, self-employed professionals, landlords, and employers.

Economic Forecasts from the OBR
The Office for Budget Responsibility (OBR) released revised economic forecasts, highlighting:
• GDP growth downgraded to 1% for 2025 (previously 2%) due to rising energy costs, higher government borrowing, and global uncertainties.
• Inflation projected to average 3.2% in 2025, before falling to 2% by 2027.
• Public finances under pressure, requiring either tax increases or spending cuts.

Key Measures Affecting Businesses
• No immediate tax increases – Further tax changes will be announced in the Autumn Budget 2025.
• Making Tax Digital (MTD) Expansion – The threshold for MTD for Income Tax (MTD for IT) will now apply to businesses and landlords with incomes over £20,000 from April 2028.
• Business Rates Reform – A government report on the future of business rates will be published in summer 2025.
• R&D Tax Relief Changes – The government is considering mandatory advance clearances to reduce fraud and errors.
• Crackdown on Phoenixism – HMRC and the Insolvency Service will increase enforcement against directors abusing the insolvency system.
Want to know how these changes affect your business? Contact EOACC for personalised guidance!

Making Tax Digital (MTD) for Income Tax: New Compliance Rules
Who Needs to Comply with MTD for IT?
• April 2026: Applies to sole traders and landlords earning over £50,000.
• April 2027: Extends to those earning over £30,000.
• April 2028: Further reduced to £20,000.

How Does This Affect You?
• Quarterly tax submissions required via HMRC-approved software.
• End-of-year tax returns must be submitted digitally (no more free HMRC online service).
• Potential penalties for non-compliance.
Need help transitioning to MTD-compliant software? Get in touch with EOACC for expert advice!

Public Procurement Act 2025: More Opportunities for Small Businesses
The Public Procurement Act 2025 introduces significant changes aimed at helping small businesses win government contracts.
Key Benefits for SMEs:
• New Central Digital Platform – Allows businesses to register and access public sector bidding opportunities.
• 30-day payment terms – Faster payments for businesses supplying public sector organisations.
• Stronger enforcement against poor suppliers – Underperforming contractors may be barred from future contracts.
With £400 billion spent annually on public procurement, now is the time for small businesses to explore these opportunities. EOACC can guide you through the bidding process!

New Energy Efficiency Rules for Landlords: What You Need to Know
The UK government is proposing stricter Energy Performance Certificate (EPC) standards for private landlords.
Proposed Changes:
• By 2030, all rental properties must have a minimum EPC rating of C (currently E).
• Estimated compliance cost: £6,100 – £6,800 per property.
• £15,000 cap on upgrade costs, with affordability exemptions available.
• Consultation open until 2 May 2025.
This could significantly impact landlords, buy-to-let investors, and rental property owners. Need help understanding your obligations? Contact EOACC today!

April 2025 Payroll Changes: National Minimum Wage & Employers’ NI Increases
From April 2025, businesses must prepare for higher wage and tax costs.
Updated National Minimum Wage Rates:
Category New Hourly Rate
National Living Wage (21+) £12.21
18–20-Year-Old Rate £10.00
16–17-Year-Old Rate £7.55
Apprentice Rate £7.55
Accommodation Offset £10.66

Employers’ National Insurance (NI) Changes:
• Employer’s NI rate increases to 15% (from 13.8%).
• NI threshold drops to £5,000 (from £9,100).
• Higher costs for employers managing payroll and staff wages.
Concerned about the impact of these changes on your business? EOACC can help with payroll planning and compliance!

Final Thoughts
With major tax, payroll, and financial changes on the horizon, businesses must stay informed and plan ahead. EOACC is here to help you navigate these changes, optimise tax efficiency, and ensure compliance.