Spring Budget 2025: Key Updates Every UK Business Should Know
- Ashank Rao
- May 19
- 2 min read
Updated: May 21
The UK Government released its Spring Budget 2025, outlining important changes impacting businesses, accountants, and individuals. At TwinTallies, we’ve reviewed the budget to highlight what matters most to you — from tax updates to incentives and compliance changes.
Here’s a quick, clear breakdown:
Top 5 Budget Highlights You Need to Know
1. Corporation Tax Frozen at 25% No increases this year. Companies with profits under £50,000 continue to pay the small profits rate of 19%.
2. Full Expensing Extended The 100% capital allowance on qualifying plant and machinery has been made permanent. A big win for businesses investing in equipment or tech infrastructure.
3. VAT Registration Threshold Raised The VAT threshold rises from £85,000 to £90,000, easing the burden for small businesses.
4. National Insurance Cut Continues Employee NICs reduced from 10% to 8%, and self-employed Class 4 NICs fall to 6%. This change is set to boost take-home pay.
5. R&D Tax Relief Simplified A merged scheme is introduced for all SMEs and large businesses, improving access to innovation funding with fewer barriers.
What This Means For You?
• Accounting Firms: Consider advising clients on capital investment strategies to take advantage of full expensing.
• Small Businesses: Reassess VAT registration plans and evaluate NIC savings in payroll planning.
• Startups: The R&D changes can unlock more funding and simpler claims — especially for tech or product-driven firms.
TwinTallies’s Perspective
“The Spring Budget 2025 shows the government’s continued focus on boosting growth and supporting investment. As your outsourced finance team, we’re here to help you adapt quickly and stay compliant.” – Team TwinTallies
Need help understanding how the Spring Budget affects your business? Get in touch for a quick review of your tax position or compliance strategy.
Comments