This month we are snapshotting a variety of upcoming changes for businesses and employers. 

FROM 1 MARCH 2025 – NEW ADVISORY FUEL RATES

* fully electric cars only.  Hybrid cars are treated as either petrol or diesel.

FROM 1 APRIL 2025 – national living wage INCREASES

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.