HMRC SME action plan 2025–28: what changes for small businesses
The HMRC small and medium-sized enterprise (SME) action plan for 2025 to 2028 outlines how the government plans to make it easier for small businesses to win public sector work, reduce burdens. Clarify procurement rules. This explainer summarizes what happened, who is affected, and practical next steps, with plain explanations of unfamiliar terms and direct links to official sources.
What this plan sets out in brief
The plan describes target actions by HMRC to reduce barriers for SMEs to compete for government contracts. It includes aims to increase SME procurement spend, simplify how contracts are awarded, and provide clearer guidance to small businesses about public sector opportunities. The document specifies that updates were made to include more recent data on how much government spending is sent to SMEs, and to publicly track progress on those targets.
Who is affected and how
The changes are centered on small and medium-sized enterprises that want to supply goods or services to government departments. The plan targets easier access to public sector supply chains, meaning SMEs currently facing paperwork or cost barriers may see simplified processes, earlier notifications of opportunities, and clearer procurement rules. Large suppliers and public bodies are also involved because they must implement the new routes and reporting requirements.
Practical next steps for SMEs
For small businesses, practical steps include monitoring government procurement portals for opportunities, reviewing HMRC guidance on how to register as a supplier. Preparing standard documentation that demonstrates capabilities, financial stability, and compliance with public procurement requirements. Businesses should also note any new data on how much government spend is directed to SMEs, which may inform bidding readiness and strategy. If you are unsure how a rule applies to you, seek guidance from the relevant government procurement service or a business advisor familiar with public sector contracts.
Limits, questions, and further information
As with any policy plan, there are questions about how quickly changes will be implemented and how success will be measured. The plan mentions targets and data updates, but individual contracts and procurement outcomes can vary. For precise details on eligibility criteria, contract types, and reporting mechanisms, refer to the official HMRC page and the linked sources provided below.
Which sources did Setup in Bahrain review?
Setup in Bahrain reviewed the following source material before preparing this explanatory article.
The links remain visible so readers can inspect the evidence, compare dates and context, and confirm current requirements with the relevant authority.
- gov.uk — evidence source reviewed for this article.
Information and responsibility notice: This article is general information based on the cited material available when published. It is not legal, tax, immigration, medical, financial, banking, or investment advice; it does not create a professional-client relationship; and it is not a guarantee of outcome, availability, accuracy, or eligibility. Rules, schedules, prices, and third-party information can change. Confirm material decisions with the relevant authority and an appropriately qualified adviser before acting.