Introduction
Welcome to our latest monthly update, providing an overview of the latest developments and HMRC announcements which employers need to consider.
Advisory fuel rates 1 March 2025
HMRC have announced their quarterly advisory fuel rates update from the 1 March 2025 for employees using a company car.
The rates are used:
- When reimbursing employees for business travel in their company cars; or
- For employees who need to repay the cost of fuel for private use.
Please find the updated rates detailed here
Changes to tax treatment of double cab pick-ups
As part of the February issue of the HMRC Employer Bulletin. HMRC have published updated guidance in relation to a change in the interpretation of how double cab pick-ups are considered under the car benefit rules.
Our recent article explains the changes in more depth here
Changes in the Official Rate of Interest
There was an announcement in the 2024 Autumn statement that may have been missed by employers. From 6th of April 2025 the Official Rate of Interest (ORI) will change from the rate set for the whole year to a quarterly review.
Further detail is provided here
IR35 threshold changes
HMRC has confirmed that changes to the company size thresholds in the Companies Act 2006, which are due to come into effect from April 2025, will also apply for the purposes of the IR35 off-payroll working legislation. Further details are provided here
Perfect Storm
April 2025 will see the increase in Employer’s National Insurance Contributions (‘NIC’) and National Minimum/Living wage. This coupled with the proposed employment right changes for employees means that companies are reviewing their employee costs to see how they can best mitigate these increases.
The following articles here & here provide further information about how Pension Salary Exchange can be used to mitigate the impending increase employers will face come April.
Employment tax calendar
Please find a link (here) to an employment tax calendar providing you with details of the key dates for you to bear in mind throughout the coming tax year.
