News article

Here are some of the  most recent changes in the accounting world that we think will affect you.

Double cab pickups

Hidden deep in the 2024 October budget is the news that double cab pick ups are no longer classed as vans but will be reclassified as cars.

The change in taxation will come into effect from 1 April 2025 for corporation tax and 6 April 2025 for income tax.

Double- cab pickups will then be treated as cars for the purposes of capital allowances, benefits in kind and when calculating some deductions from business profits
What is a double cab pick-up?

A double cab pick up is a vehicle that has a front passenger cab that contains a second row of seats and is capable of seating about four passenger plus the driver, four doors capable of being opened independently, whether the rear doors are hinged at the front or the rear (two door versions are normally accepted to be vans), and an uncovered pickup area behind the passenger cab.

Changes to Employers National Insurance

HMRC are to increase Employers national insurance from the current rate of 13.8% to 15% from 6^th April 2025.

They are also going to reduce the level at which employers start paying National insurance.  The current level is £9,100.  This will reduce to £5,000.

This means that businesses will pay more to employ staff.

The good news for small businesses is that the government have increased the Employment Allowance.

The Employment Allowance is a government initiative that allows eligible small employers to reduce their National Insurance liability.

The current allowance is £5,000. This will increase to £10,500 in April 2025.

To find out how this effects your business please contact us.

Changes to the Capital Gains Tax (CGT) rates

As announced at Autumn Budget 2024, the government will increase the main rates of CGT from 10% and 20% to 18% and 24% respectively. The change will take effect for disposals made on or after 30 October 2024.

The rate of CGT for Business Asset Disposal Relief and Investors’ Relief is increasing to 14% for disposals made on or after 6 April 2025, and from 14% to 18% for disposals made on or after 6 April 2026.

No changes will be made to the 18% and 24% rates of Capital Gains Tax that apply to residential property gains.

Furnished holiday lettings

he government announced in the October budget that they will continue with plans to remove the specific tax treatment and separate reporting requirements for Furnished Holiday Lettings (FHL).

Income and gains from a FHL will form part of the person’s UK or overseas property business. These changes will take effect on or after 6 April 2025 for Income Tax and Capital Gains Tax and from 1 April 2025 for Corporation Tax and for Corporation Tax on chargeable gains.