Treatment of double cab pick-up vehicles The government will treat double cab pick-up vehicles (DCPUs) with a payload of one tonne or more as cars for certain tax purposes. From 1 April 2025 for Corporation Tax, and 6 April 2025 for Income Tax, DCPUs will be treated as cars for the purposes of capital allowances, benefits in kind and some deductions from business profits. The existing capital allowances treatment will apply to those who purchase DCPUs before April 2025. Transitional benefit in kind arrangements will apply for employers that have purchased, leased, or ordered a DCPU before 6 April 2025. They will be able to use the previous treatment, until the earlier of disposal, lease expiry, or 5 April 2029. Company vans The government will uprate the Van Benefit Charge and the Van Fuel Benefit Charges by CPI from 6 April 2025.
Upper Secondary Threshold of £50,270 for the first year of a veteran’s employment in a civilian role. National Living Wage and National Minimum Wage The government has announced increased rates of the National Living Wage (NLW) and National Minimum Wage (NMW) which will come into force from 1 April 2025. The rates which will apply are as follows:
NLW 18-20 16-17 Apprentices
From 1 April 2025
£12.21
£10.00
£7.55
£7.55
The apprenticeship rate applies to apprentices under 19 or 19 and over in the first year of apprenticeship. The NLW applies to those aged 21 and over. Comment For an NLW worker working 37.5 hours per week, the increases announced today will increase their annual gross pay by £1,505.54 and their monthly gross pay by £125.46. Taxable benefits for company cars The rates of tax for company cars are amended for 2025/26: • The charge for zero emission cars rises from 2% to 3%. • The charge for other cars increases by 1%. • The maximum benefit of 37% remains. The government has confirmed increases to the benefit in kind rates for company cars for tax years up to and including 2029/30. Car fuel benefit charge The government will uprate the car fuel benefit charge by CPI from 6 April 2025.
Mandating the reporting of benefits in kind via payroll software The government confirms that the use of payroll software to report and pay tax on benefits in kind will become mandatory, in phases, from April 2026. This will apply to income tax and Class 1A NICs.
Employment
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