
This month we are snapshotting a variety of upcoming changes for businesses and employers.
FROM 1 MARCH 2025 – NEW ADVISORY FUEL RATES
Engine Size
|
Petrol
|
Diesel
|
LPG
|
Electric*
|
1400cc or less
|
12p
|
|
11p
|
7p
|
1600cc or less
|
|
12p
|
|
7p
|
1401cc – 2000cc
|
15p
|
|
13p
|
7p
|
1601cc – 2000cc
|
|
13p
|
|
7p
|
Over 2000cc
|
23p
|
17p
|
21p
|
7p
|
* fully electric cars only. Hybrid cars are treated as either petrol or diesel.
FROM 1 APRIL 2025 – national living wage INCREASES
|
NMW Rate
|
Increase £
|
Increase %
|
Apprentice Rate
|
£7.55
|
£1.15
|
18.0%
|
16-17 Year Old Rate
|
£7.55
|
£1.15
|
18.0%
|
18-20 Year Old Rate
|
£10.00
|
£1.40
|
16.3%
|
National Living Wage (21 and over)
|
£12.21
|
£0.77
|
6.7%
|
Different minimum wage rates continue to apply to 18–20-year-olds, 16–17-year-olds and apprentices aged under 19 or in the first year of an apprenticeship.
FROM 1 april 2025 - Business Rates Relief Changes
The government is reducing the Retail, Hospitality and Leisure (RHL) business rate relief from 75% to 40%. Eligible businesses include shops, restaurants, cafes, bars, pubs, cinemas, music venues and hospitality or leisure businesses e.g. gyms, spas or hotels.
BEFORE 5 APRIL 2025 - MAXIMISE YOUR STATE PENSION ENTITLEMENT
Anyone with incomplete NIC records can currently make extra payments to make up any shortfalls that occurred between 6 April 2006 and 5 April 2019. However, this will not be available after 5 April 2025 and individuals are being urged to review their NIC record and State Pension forecast online at Gov.uk. Both services require a Government Gateway login.
FROM 6 APRIL 2025 - Changes to employer nicS TAKE EFFECT
Changes to employer National Insurance Contributions will take effect from 6 April 2025:
- The employer Class 1, Class 1A, and Class 1B NICs rates increase to 15%, from 13.8%.
- The Secondary Threshold (the point at which employers start to pay employer NICs) decreases from £9,100 to £5,000 per year.
Simultaneously, the Employer’s Allowance is increasing from £5,000 to £10,500 which will cushion some of the impact from the changes to employer’s NICs.
FROM 6 APRIL 2025 – NEW Statutory Neonatal Care Leave and pay
The government intends to introduce a new statutory entitlement to Neonatal Care Leave and pay from 6 April 2025. This will entitle employed parents whose babies are admitted to neonatal care to a day-one right to take up to 12 weeks off work, depending on how long their baby is in neonatal care, and up to 12 weeks of statutory pay.
FROM 1 & 6 APRIL 2025 – DOUBLE CAB PICKUPS NEW classification
After last years’ embarrassing U-turn, it now follows that from 6 April 2025 most double cab pickups will be classified as cars when calculating the benefit charge and from 1 April 2025 for the purposes of capital allowance deductions. However, transitional arrangements have been put into place, meaning that businesses and employers who purchase, lease or order* a double cab pick up before 6 April 2025 will still be able to rely on the previous treatment, i.e. being classified as a goods vehicle, until the earlier of disposal, lease expiry or 5 April 2029.
* orders must have been paid for before 1 October 2025
If you are concerned about the potential impact of any of the above changes, please do not hesitate to get in touch, we are here to help.
