Spring Budget 2025 – What It Means for SMEsin the UK

The Chancellor’s 2025 Spring Budget brought in several updates that affect business
owners, especially small and medium enterprises (SMEs). Here’s what you need to know.
🏗 1. Full Expensing Extended
Businesses can now fully expense qualifying plant and machinery purchases, including
IT equipment, for another 3 years. This means:
● 100% tax relief in the year of purchase
● Applies to new (not second-hand) assets
● Significant savings if you’re investing in your business
💷 2. Business Rates Support Extended
Retail, hospitality, and leisure businesses continue to benefit from 75% business rates
relief (up to £110,000 per business).
This offers a huge saving for brick-and-mortar businesses affected by inflation and high
energy costs.
🧪 3. R&D Tax Relief Reforms
From April 2025:
● SME R&D credit rate reduced slightly to 18.6%
● But compliance is tightening—expect more scrutiny and the need for detailed
technical reports
🔎 If you’re doing innovative work, even in software, engineering, or food tech, you could still
claim significant rebates.
🛠 4. Employment Support
● Increase in National Living Wage to £11.44/hour for workers aged 21+
● Employers should update payroll systems accordingly
💡 Need help adjusting your strategy for these changes? Speak with us today to find out
how to maximise reliefs and avoid hidden costs.