Clarksons Newsletter March 2025


 

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.

MORE THAN ACCOUNTANTS