2.    Avoid any double cab ‘hiccups’

HMRC has published new guidance regarding a change in the interpretation of how Double-Cab Pickup (DCPU) vehicles should be classified for car benefit, capital allowances and deductions from business profits purposes. Previously, HMRC accepted that if the payload of a DCPU was 1 tonne or more, it was a goods vehicle, not a car, and therefore qualified for beneficial capital allowances and benefit in kind treatment.

Following the government’s announcement in Autumn Budget 2024, from April, HMRC will no longer apply the payload test and instead consider the vehicle’s primary suitability when it was constructed. DCPUs are deemed ‘dual-purpose’ and not primarily suited to carrying goods or burden, so will be classed as cars.

Transitional arrangements are in place, so if you are considering purchasing a DCPU, bear in mind that acquiring a DCPU prior to 6 April 2025 will ensure that the more attractive benefit in kind tax treatment that applies to goods vehicles is available for a few more years. For capital allowances purposes, entering into a contract to purchase a DCPU prior to 6 April 2025 will secure the beneficial capital allowances treatment for goods vehicles, provided the date the obligation to pay for the DCPU is before 1 October 2025.

3.    Employment expenses

It is possible to claim Income Tax relief on eligible employment expenses that have not been reimbursed by your employer. If you file a tax return, this relief can be claimed on the employment pages, but for employees who do not file in self assessment, it is possible to claim tax relief using an online form (P87). When making a claim it will be necessary to provide evidence of the expenses incurred.

Expenses on which tax relief can be claimed include:

·        Working from home (only if your employment contract requires you to do so).

·        Repairing or replacing a uniform or small tools.

·        Travel for business journeys (not journeys to or from a place of work).

·        Professional fees and subscriptions approved by HMRC.

4.   Would you benefit from a top up contribution to your State Pension?

HMRC have revealed 37,000 people have plugged gaps in their National Insurance (NI) record since last April, boosting the amount of State Pension they will receive when they reach retirement age.

The amount of State Pension you will receive is based on how many completed years you have in your NI record. Currently it is possible to review your record going back to 2006, and where there is a gap, you can contribute to plug the gap and ensure that you maximise the amount of State Pension available to you in retirement.

There is limited time to be able to do this though. From 6 April 2025, you will only be able to make voluntary NI contributions for the previous 6 tax years, meaning there is now less than two months left to be able to plug any gaps that date back to 2006.

HMRC have an online service that allows you to check and view any gaps in your NI record, calculate the difference any payment will make to your State Pension and then make a payment for the years you would like to top up.

5. Rises to national minimum wage confirmed

Legislation has been laid before Parliament confirming that the new National Living Wage and new Minimum Wage rates will take effect from 1 April 2025.

As a reminder, the National Living Wage will increase to £12.21 from 1 April. This is a 6.7% increase and will be worth £1,400 a year to an eligible full-time worker.

The National Minimum Wage for 18-20 year olds will increase to £10.00 an hour. For an eligible full-time worker, this will work out to an extra £2,500 a year.

An impact assessment published on the same day the legislation was laid indicates that these increases will put around £1.8 billion into the pockets of workers over the next six years.

Edited by - Peter Burns - Senior Client Manager at England & Company