Chancellor Rachel Reeves has now delivered her first Spring Statement, and while there are no headline-grabbing giveaways, there are some key points that affect freelancers and contractors.
No Tax Hikes
As expected, there were no increases announced to income tax, National Insurance or VAT – good news for now. The government’s focus currently appears to be on stability. Most of the recent major announcements were made in October’s Budget, which you can find more information on in our Autumn Statement 2024 Analysis.
Tougher Stance on Tax Evasion
HMRC is getting more funding and tech to crack down on evasion, aiming to raise £7.5 billion a year. If you’re trading through a limited company, you may need to expect tighter enforcement and more scrutiny.
Welfare Reform & Employment Focus
£1 billion is going into personalised employment support, with the goal of getting more people into work. This may increase competition in some freelance markets, especially across tech and digital.
Opportunities in Public Sector & Housing
More spending on housing, public services, and defence means potential contract work – especially in construction, digital, and innovation. £2 billion is being spent on affordable housing, and defence tech is a major investment area.
Growth & Inflation Outlook
Inflation is set to fall to 2.1% by 2026, and household income is expected to rise by £500/year. Growth is steady but slow – around 1.8-1.9% in later years of the forecast.
The Bottom Line
This statement is all about long-term reform. No big tax changes unveiled yet, but increased HMRC activity is coming. Keep an eye on opportunities tied to government contracts and investment in housing, defence, and digital infrastructure.
Need help understanding how this affects your taxes or business structure? We’re here to help.
