GWA Community Support – Winter 2022/23

Attention! An important change in legislation will be taking affect in April 2026 which will affect payroll processes.

As you may be aware, in February 2024 HMRC proposed a change in relation to the tax treatment of double cab pick-ups for both capital allowances and benefit in kind (BIK) purposes. They then quickly changed their mind around a week later and decided not to implement the changes. However, following the most recent Budget the Government have again decided these changes should be put in place.

The favourable tax regime for Furnished Holiday Lettings (FHLs) was first introduced in 1984. Forty years later, in the Spring 2024 Budget the then Chancellor of the Exchequer, Jeremy Hunt announced its abolition from 6 April 2025.

The biggest revenue raiser in the Budget was the changes to NICs. The increase in Employers’ NICs (increasing from 13.8% to 15% from April 2025) grabbed many of the headlines. What has been largely overlooked is the reduction in “Secondary Threshold” from £9,100 to £5,000. Allied to the increase in the National Living Wage, the changes will particularly affect those in the care, retail, hospitality and cleaning/maintenance sectors.