On Wednesday 26 March 2025, the Chancellor Rachel Reeves announced the latest Spring Statement.
Making Tax Digital rollout dates
The Chancellor confirmed changes to the rollout of MTD – with those with income of over £20,000 now mandated to start using the system from April 2028, earlier than planned.
Below shows an at-a-glance view of mandatory dates for the start of MTD.
Late payment penalty increases
From April 2025:
- Once those have joined MTD (or for VAT who are already on this), the late payment penalties will be increased as follows
- 3% of the tax outstanding when overdue by 15 days
- 3% where tax is overdue by 30 days
- plus 10% per annum where tax is overdue by 31 days or more.
As such, if you were over 31 days late, this would be 16%.
High Income Child Benefit Charge (HICBC)
If you are currently liable to pay this, a new system will be launched to allow you to deduct the amounts due via your PAYE payments direct to HMRC instead of repaying at the end of the year
Full statement
You can view the full statement here
