While the Chancellor made it clear that there were no tax rises in her Spring Statement, here are some of the key announcements that were included which relate to closing the tax gap.

Confirmed rollout of MTD for ITSA

There was renewed confirmation that Making Tax Digital for income tax and self assessment for sole traders and landlords will be going ahead from April 2026 as previously announced. Furthermore, it has now also been confirmed that individuals with qualifying income over £20,000 will also be mandated into MTD from April 2028.

The government will continue to explore how it can best bring benefits of digitalisation to those with income below the £20,000 threshold. This indicates that the qualifying income limit will be lowered even further in future years. To assist some taxpayer groups that will face disproportionate barriers to operating MTD, the government will introduce legislation, subject to notifying and satisfying HMRC, to either defer or exempt the following groups of taxpayers:

• customers who have a power of attorney
• non-UK resident foreign entertainers and sportspeople who have no other income sources that count as qualifying income for MTD
• customers for whom HMRC cannot provide a digital service
• ministers of religion  
• Lloyd’s underwriters  
• recipients of the Married Couples’ Allowance  
• recipients of the Blind Persons’ Allowance.  

Increase in penalties for VAT and MTD ITSA from April 2025 onwards

Following on from – and based on the responses received from the call for evidence on the Tax Administration Framework review in 2021 – the government has announced a further consultation on the Reform of Behavioural Penalties which sets out options for changes to the current regime of inaccuracy and failure to notify penalties.

Focusing on strengthening penalties on the most serious failures and inaccuracies, simplifying and raising penalties on offshore non-compliance and setting minimum penalties based on the timing of disclosures of non-compliance, amongst other considerations, the consultation will run from 26 March 2026 to 18 June 2025.

Members with any views, feedback and comments on the consultation questions can send these comments to ACCA at ukpolicy@accaglobal.com.

Consultation on HMRC’s bulk data gathering powers

A consultation on Better use of new and improved third-party data will explore opportunities for improving the quality of data acquired from third parties for tax administration. The new and improved data will be used to help taxpayers get their tax right the first time, while closing the tax gap. The scope of the consultation is on improvement of the quality of data already being gathered under HMRC’s ‘bulk data gathering powers’ on bank and other interest and card sales data whilst considering collection of new data from financial institutions on dividend and other investment income. This consultation will run from 26 March 2025 to 21 May 2025.

Members with any views, feedback and comments on the consultation questions can send these comments to ACCA at ukpolicy@accaglobal.com.

Consultation on HMRC’s powers against tax advisers and non-compliance

A new consultation on HMRC’s powers against tax advisers facilitating non-compliance will seek views on:

• whether HMRC’s current powers are effective in dealing with non-compliance facilitated by tax advisers
• enhancing HMRC’s powers to investigate tax advisers where HMRC suspects their actions have led to an inaccuracy in a taxpayer’s document
• to enable HMRC to request information from tax advisers where HMRC suspects misconduct
• introducing stronger penalties against tax advisers who contribute to the tax gap
• publishing details of HMRC sanctions on tax advisers
• disclosures to professional bodies regarding concerns about their members’ activities that falls below the normal disciplinary investigation thresholds of professional bodies.

The consultation will run from 26 March 2025 to 7 May 2025. Members with any views, feedback and comments on the consultation questions can send these comments to ACCA at ukpolicy@accaglobal.com.

Consultation on proposals around promoters of marketed tax avoidance

A new consultation on proposals to close in on promoters of marketed tax avoidance will seek views on some new proposals to close in on promoters (and other enablers) of tax avoidance schemes and do more to support taxpayers to steer clear of and permanently exit tax avoidance. Views are welcomes on proposals in these four key areas:

• expanding the scope of the Disclosure of Tax Avoidance Schemes (DOTAS) regime
• introducing a Universal Stop Notice and Promoter Action Notice
• tackling controlling minds and those behind the promotion of avoidance schemes through new highly targeted obligations and stronger information powers
• exploring options to tackle legal professionals designing or contributing to the promotion of avoidance schemes.

The consultation runs from 26 March 2025 to 18 June 2025. Members with any views, feedback and comments on the consultation questions can send these comments to ACCA at ukpolicy@accaglobal.com.

Consultation on R&D tax relief advance clearances

A new consultation seeking views on clearances for the Research and Development (R&D) tax reliefs, with the aims of reducing error and fraud, increasing certainty for taxpayers, and improving taxpayer experience. The consultation asks questions about the current voluntary advance assurances for R&D relief claims and why uptake on these is low, discusses the merits and costs of voluntary versus mandatory assurances and eligibility criteria and sets out options being considered for designing a better service.

The consultation will run from 26 March 2025 to 26 May 2025. Members with any views, feedback and comments on the consultation questions can send these comments to ACCA at ukpolicy@accaglobal.com.