Taxable benefits for company cars The rates of tax for company cars remain frozen for 2024/25. Future car benefit rates have been announced for 2025/26 to 2027/28: • For 2025/26, the rates for emissions under 75gm/km increase by 1%. • For 2026/27, the rates for emissions under 75gm/km increase by a further 1%. • For 2027/28, the rates for emissions under 75gm/km increase by a further 1%. The charge for electric cars will rise from 2% to 5% over that period. For cars with emissions of 75gm/km and above, there will be a 1% rise in 2025/26 only, subject to a maximum of 37%. From 6 April 2024 the figure used as the basis for calculating the benefit for employees who receive free private fuel from their employers for company cars remains £27,800. Company vans For 2024/25 the benefit remains £3,960 per van and the van fuel benefit charge where fuel is provided for private use remains £757. If a van cannot in any circumstances emit CO 2 by being driven, the cash equivalent is nil.
Extension of NICs relief for hiring veterans The government is extending the employer NICs relief for businesses hiring qualifying veterans for a further year from April 2024 until April 2025. This means that employers will continue to pay no employer NICs up to annual earnings of £50,270 for the first year of a qualifying veteran’s employment in a civilian role. National Living Wage and National Minimum Wage The government has accepted in full the recommendations of the Low Pay Commission and announced increased rates of the National Living Wage (NLW) and National Minimum Wage (NMW) which will come into force from 1 April 2024. In addition, from 1 April 2024 the NLW will be extended to 21 and 22 year olds. The rates which will apply from 1 April 2024 are as follows:
NLW 18-20 16-17 Apprentices
From 1 April 2024
£11.44 £8.60 £6.40
£6.40
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 The Department for Business and Trade estimates 2.7 million workers will directly benefit from the 2024 National Living Wage increase.
Employment
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