Spring Statement 2025
- easternlandlords
- Mar 27
- 3 min read
Today’s Lovewell Blake Spring Budget Statement was well attended and provided as much information as possible, although of course, they opened by saying there isn’t too much to report this time!
Rachel Reeves remains committed to only one budget per year and its not looking particularly promising for families who are in receipt of benefits with over 3 million people projected to be worse off. This of course could impact on landlords as they may have tenants who are already struggling, feeling the extra impact of these changes.
Unfortunately, the UK workforce hasn’t really recovered from Covid and certainly more was hoped for from this Spring Statement for the tax and business world.
The LB update was highly informative, and it would always be our recommendation to speak to them or an alternative accountant or specialist to tap into their level of expertise when it comes to tax planning, trusts, etc. Contact the team at Lovewell Blake at one of their offices located near you for help with any questions of specific needs. Their website details and
linked at the bottom of this Blog.
How will some of the announcements affect Landlords?
Landlords who earn more than £20,000 will come under the HMRC’s new MTD system (Making Tax Digital) by April 2028. This means that landlords and the self-employed, will need to be compliance using the new digital system to keep their tax records compliant, submit their returns and make any payments.
The figures state that with around 4.39 million self-employed people and about 2.8m landlords, 90% of whom are single property landlords so this could become a difficult area to navigate with MTD being implemented over the next 2-3 years. In summary;
From 6 April 2026, landlords will be required to register for MTD for Income Tax where their turnover (gross income before deductions) is more than £50,000 per annum.
From 6 April 2027, landlords with turnover of more than £30,000 per annum will be required to register for MTD.
In the autumn Budget 2024, it was announced that a third phase would be introduced where landlords with turnover of £20,000 per annum will also be required to join MTD for IT, on Wednesday's spring statement it was confirmed as 6 April 2028
You will need to use Making Tax Digital for Income Tax if all of the following criteria apply:
You are an individual registered for Self-Assessment
You get income from self-employment or property, or both
Your qualifying income is more than £30,000
Your qualifying income is the total gross income that you get in a tax year from self-employment and property.
There will be business exemptions!
you lack internet access at your business premises and are unable to relocate somewhere that does have access
your age or disability stops you using electronic devices for the time it takes to manage digital tax records
you or your business are in the process of becoming insolvent
using electronic devices or keeping electronic records goes against your religious beliefs
you’re already exempt from submitting VAT returns online
Please seek assistance from tax specialists to help you fully understand your obligations and compliance requirements.
What are our thoughts on any specific PRS implications?
Well in summary this week, it sounds like Rachel Reeves is advocating for significant housing reforms as part of Labour's broader policy agenda. The government's push to increase housebuilding to its highest level in decades could have a substantial impact on both the housing market and the economy.
The £600m investment to train 60,000 construction workers and the establishment of new technical colleges seem to address the need for skilled labour, which is key to meeting these ambitious goals. To support those plans, the government are aiming to create 10 new technical colleges of excellence across Britain.
Additionally, the focus on planning reforms, including the use of green belt land and mandatory housing targets, indicates a shift toward more aggressive housing policies. The projection that these changes is said to potentially boost real GDP by 0.2% by 2029-30 suggests a significant economic payoff from these reforms. This remains to be seen.
It seems like a major goal for Government is not just the number of homes being built but also the broader economic benefits and the promise to make housing more accessible.
Essentially this Spring Statement was a reiteration of points announced back in the budget and we will continue to have to see how the current Government shows support of the growth. The feeling is that lots of taxes are being raised and are being ultimately funded by business which are big costs that struggling business can ill afford.
Of course, some of the changes from October haven’t come into force yet either so we haven’t quite been able to see the impact.
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