The Government has unveiled 26 tax measures in a surprise spring update, headlined by a one-year delay to the mandatory payrolling of benefits and a revision to the Check Employment Status for Tax (CEST) tool.
The mandatory payrolling of income tax and Class 1A NIC on benefits, originally planned for April 2026, will now start on 6 April 2027. The delay follows concerns raised by industry experts about the readiness of software providers.
It also eases pressure ahead of a busy April 2026, which will already see the start of Making Tax Digital for income tax and Companies House identity verification.
Another key update is the revision of the CEST tool, which is intended to make it easier to use. HMRC will publish new guidance alongside the changes from 30 April 2025, although critics remain cautious about whether the core issues have been addressed.
In other measures, from May 2025, employers transferring NIC liability on employment-related securities will no longer need HMRC pre-approval if using the GOV.UK template.
The Government also announced simplifications, including removing computers from the capital goods scheme, raising the capital expenditure limit for land and buildings to £600,000, and plans to simplify HMRC communications. New consultations cover VAT on business donations to charities, landfill tax reform, transfer pricing rules, and dispute resolution.
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