The Chancellor announced planned changes to social security and tax as part of her Spring Statement 2025. See the full Spring Statement here.
The Chancellor confirmed the extensive social security cuts outlined by the Secretary of State for Work and Pensions in the Pathways to Work Green Paper, announced on 18 March 2025. We will brief you separately on these extensive cuts. This page deals only with the changes to tax.
We strongly oppose the cuts. They will weaken the social security safety net and they scapegoat disabled people. We will respond formally to the government on the social security cuts. Watch out for our explainer on what the changes mean for you and how you can contribute to our response.
See the full Pathways to Work Green paper here.
Tax
- Making Tax Digital (MTD). You must follow Making Tax Digital requirements for Income Tax from April 2026 if you are self-employed or a landlord if you have an annual business or property income of more than £50,000. The MTD requirements will apply from April 2027 if you have an annual business or property income of more than £30,000.
The Chancellor has announced in her Spring Statement that sole traders and landlords with qualifying income over £20,000 will join Making Tax Digital from April 2028. - Late payment penalties. The Chancellor announced that there will be an increase of late payment penalties for Value Added Tax (VAT) taxpayers and Income Tax Self-Assessment taxpayers as they join MTD from April 2026 onwards.
- High Income Child Benefit Charge (HICBC). From summer 2025, employed individuals liable to the HICBC will be able to report their family’s Child Benefit payments through a new digital service and opt to pay HICBC directly through PAYE, without the need to register for Self-Assessment.
National insurance
No changes were announced to national insurance in the Spring Statement 2025. The Class 2 national insurance position for 2024/25 remains as set out here.
