Check Employment Status for Tax (‘CEST)
HMRC provided an updated CEST tool on 30 April 2025 with stated aim of making it easier for users to navigate the tool. Disappointingly, the underlying technical analysis to determine employment status has not changed. We provide further detail here.
HMRC’s Late paid interest
Following the reduction in bank base rate to 4.25%, with effect from 28 May 2025, the late-payment interest rate is 8.25% and the repayment rate is 3.25%, for most taxes.
HMRC’s Compliance checks
HMRC has published guidance on getting help in the event HMRC contacts regarding a compliance check
UK – India Social Security changes
The UK and India have agreed a social security double contributions convention as part of the recently announced trade agreement between the two countries. We are awaiting the publication of the full agreement, but it has been confirmed that where international assignments are no more than three years, it will be possible for the assignee to remain in their home country’s social security system.
Advisory fuel rates updated
HMRC has announced an update to its advisory fuel rates (AFR) for employees who use company cars and pay for all the fuel themselves but use their company cars on business, which are now in effect as of 1 June 2025.
Petrol rates have gone down by a penny for each engine size whereas for diesel cars, the rate has gone down by a penny for cars with 1600cc or less. All other rates have remained the same.
Details can be found here. The rates are published every quarter and will next be published on 1 September 2025.
