<-- Back to proposed bills
Tax Update Spring 2025: Simplification, Administration, and Reform
28 April 2025
Type
Written Ministerial Statement
Department
Treasury
At a Glance
Issue Summary
James Murray is addressing the UK government's commitment to simplify the tax and customs system as part of their Plan for Change.
Action Requested
The government is implementing a package of 26 measures aimed at simplifying the tax and customs system, reducing administrative burdens on businesses, modernising HMRC systems, and reforming certain tax schemes. Additionally, the government is setting out further measures to strengthen tax integrity and proposing legislative changes for digitalisation and efficiency in tax administration.
Key Facts
- The package includes 26 simplification measures.
- 5 ideas submitted by the Administrative Burdens Advisory Board are being implemented as priorities for simplification.
- Secondary legislation will increase the capital expenditure value of land, buildings, and civil engineering work to £600,000 (exclusive of VAT).
- The government is investing up to £5 million into HMRC’s Spirit Drinks Verification Scheme to modernise its IT system.
- Mandatory Payrolling for Income Tax and Class 1A National Insurance contributions will be introduced from April 2027 instead of April 2026.
- Up to 300,000 taxpayers will have their Self Assessment reporting threshold raised to £3,000 gross each.
- HMRC is committed to reducing paper post sent by £50 million per year by 2028-29.
- The government plans to reduce the HMRC estate in central London by 25% and move VOA functions within HMRC by the end of this financial year, resulting in 5 to 10% additional savings in VOA administrative costs by 2028-29.
▸
Assessment & feedback
Summary accuracy