MY CIPP
PAYROLL news
Double cab pickups to be treated as cars for tax DOUBLE CAB pickup (DCPU) vehicles are to be treated as cars for corporation tax from 1 April 2025 and income tax purposes from 6 April 2025. The new rules will apply to their position for capital allowances, benefits in kind (BiK) and some deductions from business profits.
This follows a Court of Appeal judgement, after which HM Revenue and Customs (HMRC) decided to amend the rules on tax treatment before swiftly changing stance when industry outcry forced its hand. At that time, HMRC stated it would legislate to keep the treatment of these vehicles as it was before (see https://ow.ly/Eysb50TZ3iX). Now HMRC has reversed its decision again and the ruling on DCPU vehicles being cars will be enforced. Transitional BiK arrangements will apply to anyone who has purchased, ordered or leased a DCPU before 6 April 2025. Additionally, they will benefit from the previous treatment until disposal, lease expiry or 5 April 2029, whichever comes earliest.
Transfer charges exclusions to end for some overseas pensions, budget documents reveal DOCUMENTATION IN the budget includes some important changes for pensions schemes administrators and the transfer of pensions outside of the United Kingdom (UK) (see https://ow.ly/8kTQ50TZ3Vl).
From 30 October 2024 (budget day), the exclusion for Qualifying Overseas Pensions Schemes (QROPS) established in the European Economic Area (EEA) from the Overseas Transfer Charge (OTC) has been removed, meaning such transfers will now incur the 25% tax charge. Additionally, from 6 April 2025, Overseas Pension Schemes (OPS) and Recognised Overseas Pension Schemes (ROPS) established in the EEA will need to follow new rules in line with the rest of the world, which are: l OPS established in the EEA will be required to be regulated by a regulator of pension schemes in that country l ROPS established in the EEA must be established in a country or territory with which the UK has a double taxation agreement providing for the exchange of information, or a Tax Information Exchange Agreement. From 6 April 2026, registered pension schemes will also be required to ensure that scheme administrators are UK residents.
Diary dates
Last day of tax month 8
5 December 6 December
First day of tax month 9
Last day for submitting a real time information employer payment summary to apply to tax month 8 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method
19 December
22 December (this is a weekend date)
Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
Merry Christmas! Happy new year!
25 December
1 January 5 January 6 January
Last day of tax month 9 First day of tax month 10
19 January (this is a weekend date)
Last day for submitting a real time information employer payment summary to apply to tax month 9 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method
Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
22 January
| Professional in Payroll, Pensions and Reward | December 2024 - January 2025 | Issue 106 19
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