Staying HMRC Compliant in 2025: What Your Business Needs to Know

Wednesday, 9th April, 2025

Staying compliant with HMRC isn't just about avoiding penalties, it's about keeping your business running smoothly and confidently. As we step into 2025, HMRC is placing even greater emphasis on digital reporting, real-time submissions, and transparency across all business sectors. Whether you're a sole trader, limited company, or freelancer, here's what you need to know to stay compliant this year.

1. Making Tax Digital (MTD) is Expanding

   By 2025, Making Tax Digital (MTD) will apply to even more businesses. MTD for Income Tax Self-Assessment is set to include:

   
   

   - Sole traders and landlords with income over £50,000 (from April 2026)

   - Those with income over £30,000 (from April 2027)

   
   

   Even if you're not mandated just yet, now is the perfect time to get familiar with cloud accounting software like Xero, QuickBooks, or FreeAgent. Going digital now helps you stay ahead of the curve and avoid last-minute stress.

   
   

2. Real-Time Information (RTI) for Employers

   If you run a payroll, you're required to submit Real-Time Information (RTI) to HMRC every time you pay your employees. This includes:

   
   

   - Employee earnings

   - National insurance contributions

   - PAYE deductions

   
   

   Mistakes or delays in RTI submissions can lead to fines and compliance checks, so make sure your payroll system is accurate and up to date.

   
   

3. VAT Compliance & Digital Submissions

   Businesses over the VAT threshold (£90,000) must submit VAT returns digitally through MTD-compatible software. In 2025, HMRC is tightening controls around VAT discrepancies, delayed filings, and incorrect returns.

   
   

   Top Tip: Double-check that your VAT scheme is still right for your business, whether it's Flat Rate, Standard, or Cash Accounting.

   
   

4. Record Keeping Requirements

   HMRC now expects businesses to keep digital records of:

   
   

   - Sales & income

   - Expenses

   - Bank transactions

   - VAT details (if registered)

   
   

   These must be stored securely and kept for at least 6 years. Cloud-based systems make this easy, and also prepare you in case of an HMRC enquiry.

   
   

5. Common Compliance Mistakes to Avoid

   
   

   - Mixing personal and business expenses

   - Missing tax deadlines

   - Not registering for taxes on time (like VAT or Self Assessment)

   
   

   These errors can lead to penalties, audits, and stress, all of which can be avoided with professional support.

   
   

6. How Pro Tax Plus Can Help

   At Pro Tax Plus, we help businesses of all sizes stay compliant, efficient, and stress-free. Our expert accountants will:

   
   

   ✔️ Ensure your records meet HMRC standards

   ✔️ Help you stay ahead of key tax deadlines

   ✔️ Set you up with MTD-compliant software

   ✔️ Offer real-time support throughout the year

   
   

   Whether you're just starting out or scaling up, we'll make sure compliance never holds you back.

Need Help Staying Compliant in 2025?

Book a free, no-obligation call with a member of our team today to review your current setup and get tailored advice.

📞 Let’s keep your business tax-smart, compliant, and ready for the future.