Spring may have been quiet, but changes are brewing for 2025 and beyond

In the early days of the current Government, tax policy dominated headlines—from speculation around pension tax changes to NIC increases and contentious proposals to extend Inheritance Tax (IHT) to farming businesses. While many ideas failed to materialise, one thing was clear: tax was front and centre.

But in recent months? Tax seems to have stepped off the front page, making room for trade and tariff news. Yet this quiet phase won’t last. Behind the scenes, policy gears are turning—and by autumn, tax may once again lead the national conversation.

🧾 Mandatory Payrolling of Benefits Delayed to 2027

One of the major announcements in recent months relates to payrolling of benefits-in-kind. Initially expected to become mandatory from April 2026, the Government has postponed the requirement to April 2027. This provides employers and payroll providers with more time to prepare.

From April 2027, most taxable benefits will need to be reported through Real-Time Information (RTI) via the Full Payment Submission (FPS)—the same filing used for employee salaries. The FPS will now also include details of:

• Benefits provided;

• Tax payable on those benefits; and

• The employer’s Class 1A NIC liability.

💡 Important note: The payrolling of accommodation and beneficial loans is still not yet mandatory, and no official start date has been announced.

HMRC will release additional guidance later in 2025 to explain new data requirements expected to be part of this reporting framework. If your business offers benefits-in-kind, it’s essential to start preparing well ahead of this change.

🌿 Good News for Capital Allowances: Survey Costs Now Qualify

Another key development involves capital allowances on environmental and technical surveys. The Court of Appeal has overturned a previous ruling that denied tax relief for pre-installation survey costs related to offshore wind turbines.

The case—originally decided against the taxpayer—questioned whether design and technical surveys could qualify for capital allowances. The Court of Appeal has now clarified that:

“Expenditure on the provision of plant or machinery includes costs for design and preparatory studies—provided the equipment is eventually acquired or installed.”

This decision means that businesses can now include surveys like:

• Landscape and visual impact assessments

• Ornithology and environmental studies

• Noise and radar interference analyses

…as qualifying expenditure under the ‘full expensing’ rules, allowing 100% deduction for corporation tax purposes in the year incurred.

If your business is planning investments in plant and machinery—especially in sectors like construction, energy, or infrastructure—this is a timely opportunity to revisit past claims or restructure current plans. Merranti’s tax team is here to help clarify whether your survey or feasibility work qualifies under this updated guidance.

🧠 Inheritance Tax, MTD, and Planning Ahead

Looking forward:

• The Government’s consultation on IHT relief for businesses, including farms, may impact wider succession strategies.

• Making Tax Digital (MTD) for Income Tax starts from 6 April 2026 for those earning over £50,000. This is a significant shift for landlords and sole traders, so now’s the time to get ready.

• Don’t forget that tax avoidance schemes continue to face scrutiny. If something seems too complex to explain simply, it’s worth a second opinion.

✅ What Should You Do Now?

As ever, the tax world is in flux. While some measures are delayed, others are already taking effect or about to be finalised. Whether you’re planning for business growth, estate succession, or managing payroll obligations, getting ahead now could save time and cost later.

📞 Want to understand how these changes apply to you? Contact the Merranti team today for tailored tax advice.

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