Making Tax Digital for Income Tax will not affect everyone at the same time. Instead, HMRC is introducing the new reporting requirements in phases, based largely on the amount of income you receive from self-employment, property, or a combination of the two. While some taxpayers will be required to comply from the outset, others will not be affected for several years, and some groups remain outside the scope altogether. Here's who needs to pay attention.

Making Tax Digital (MTD) is a government “digital first” initiative to modernise HMRC’s tax system, with the aim of making the whole process of tax simpler and more efficient.

Why Valuations Now Matter More Than Ever

Business Property Relief (BPR) has long been one of the most valuable tools in inheritance tax (IHT) planning. For many business owners, it has provided a route to pass trading businesses to the next generation with little or no IHT exposure, often removing the need for detailed tax valuations at the point of transfer.

A series of measures announced in the Chancellor’s Spring Statement will significantly reshape how employers report benefits and manage employee remuneration over the next few years. From April 2027, businesses will be required to report benefits in kind through payroll software, while parallel adjustments to company car and van tax charges will steadily increase the cost of providing these perks. Looking further ahead, reforms to salary sacrifice arrangements from April 2029 are set to alter the National Insurance treatment of pension contributions, potentially increasing costs for both employers and employees. Taken together, these changes signal a clear direction of travel: greater administrative integration, rising tax burdens on workplace benefits, and a tightening of incentives around employee reward structures.

In 2026 Spring Statement, the government confirmed that the National Insurance Contributions (NICs) framework will remain broadly stable into the 2026/27 tax year, with key thresholds frozen and rates largely unchanged, providing a degree of certainty for both employers and individuals. 

Following the Chancellor’s Spring Statement, the government has set out a series of measures affecting businesses and entrepreneurs, including corporation tax, capital allowances and research and development relief. While headline rates remain stable, for companies planning investment, managing cash flow or preparing for compliance changes, understanding these updates will be key.

The Chancellor’s Spring Statement signals a continued tightening of the UK’s tax landscape. While headline Capital Gains Tax rates remain unchanged and allowances such as the £3,000 exemption are held steady, more nuanced reforms point to a clear direction of travel: reliefs are being restricted, thresholds remain frozen, and previously generous regimes are being reshaped. From the reduction in Employee Ownership Trust relief and the tightening of Business Asset Disposal Relief, to major changes in how pensions are treated for Inheritance Tax, the cumulative effect is a system that places greater emphasis on proactive planning. For business owners, investors and families alike, the message is unmistakable, standing still is no longer a neutral position.

Whilst the world around us may be in turmoil and as the UK approaches the end of the tax year with perhaps a feeling of intrepidation, we’re highlighting some of the main points arising from the Chancellor’s recent Spring Statement. And in this post, we take a look at those all-important pensions and tax-efficient investments. 

Chancellor of the Exchequer, Rachel Reeves, delivered the Spring Statement on Tuesday 3 March 2026. The government has been keen to have only one tax event per year (the Budget) and so the Spring Statement was intended to provide an interim update on the economy and public finances and provide reassurance to the business community.