EF News
By The Sage Advice Team
The Chancellor’s Spring Statement in March was deliberately low key, serving as a progress update rather than a platform for major tax announcements. With the government committed to one main fiscal event each year, significant policy changes were always expected to wait until the Autumn Budget.
However, the absence of new measures does not mean business owners can relax. Several previously announced changes take effect from April. Together, they bring a meaningful shift in costs, compliance, and planning priorities for small and medium‑sized businesses. Here, the Sage Advice team explains what this could mean for your business.
Making Tax Digital moves closer
One of the biggest changes on the horizon is the next phase of Making Tax Digital (MTD) for Income Tax. From April, sole traders and landlords with qualifying income above £50,000 will need to keep digital records and submit quarterly updates to HMRC using compatible software. For many businesses, this will mean a move away from annual paperwork towards more regular reporting. While that can feel like extra administration, it also gives owners a more up-to-date view of cash flow and performance. Those with income between £30,000 and £50,000 should use the coming year to prepare, ahead of the April 2027 deadline, rather than leaving the transition until the last minute.
Higher employment costs to plan for
Employment costs are another area requiring attention. Although the Spring Statement itself didn’t introduce new National Insurance changes, previously announced measures take effect from April. The employer secondary Class 1 National Insurance rate remains at 15%, with the lower threshold staying at £5,000 per year until 2028. At the same time, income tax and National Insurance thresholds for employees remain frozen, increasing pressure on overall payroll costs. On top of this, the National Living Wage rises again from April. For businesses employing staff at or near minimum wage, even small hourly increases can add up quickly. Reviewing staffing models, productivity and pricing can help absorb the impact. It’s also worth checking eligibility for the Employment Allowance, which can significantly reduce an employer’s annual National Insurance bill.
Business rates and cash flow
April also brings changes to business rates, following a revaluation of rateable values. For some premises, bills will rise, adding further pressure to overheads. Pubs and music venues in England will see some relief through a temporary discount, but most businesses should expect higher costs. Checking your updated rateable value and factoring revised bills into cash-flow forecasts is essential. Where values appear incorrect, there may be scope to challenge them.
Access to finance
Alongside these cost pressures, access to finance remains a key concern for growing businesses. A recently announced SME lending package, backed by major UK banks, is designed to support investment and expansion. For business owners considering borrowing, preparation is critical. Clear plans, up-to-date financial records, and realistic forecasts can make a real difference when approaching lenders.
Changes to employment rights
Further reforms under the Employment Rights Act are expected to begin from April, including updates to statutory sick pay and paternity leave. Some details, particularly around zero-hours contracts, are still subject to secondary legislation, so the exact requirements may evolve. Reviewing employment contracts and staff policies now can help businesses stay compliant and avoid disruption later in the year.
Looking ahead
Taken together, the Spring Statement reinforces a familiar message: while there may be no dramatic policy shifts, April is a busy and important milestone for small businesses. Rising employment costs, new reporting requirements, and changes to reliefs all require careful planning. Reviewing how these changes affect your business, speaking to advisers and updating systems early can reduce risk and create more certainty for the year ahead.
