CKW Chartered Certified Accountants

04/12/2025

🏠 Working From Home Tax Relief Is Ending in 2026

Many people have been claiming the £6 per week working-from-home tax relief. From 6 April 2026, this relief will be removed unless your employer reimburses the costs directly.

Why is it changing?
HMRC found that many claims made since Covid were not actually eligible, often because hybrid workers were not required to work from home. ❌

What does this mean for you?
• Employees will no longer be able to claim the £6 per week tax deduction themselves
• Basic rate taxpayers will pay around £62 more tax per year, higher rate around £124 📉
• Employers can still pay a tax-free homeworking allowance if the employee meets the rules ✔️

If you want advice on how this affects you or your business, CKW is here to help 😊

03/12/2024

🚨 Double Cab Pick-Ups: Big Tax Changes Coming in 2025! 🚨

From April 2025, the government will treat double cab pick-ups with a payload of one tonne or more as company cars for tax purposes, instead of vans. This change impacts:

✅ Capital allowances
✅ Benefit-in-Kind (BIK) tax
✅ Deductions from business profits

What does this mean for drivers?

A dramatic increase in BIK tax.
For example, a Ford Ranger (list price ~£48,000+, CO2 >178g/km+) will see BIK rise to £17,700/year, costing employees:
£7,110/year (40% taxpayers)
£3,550/year (20% taxpayers)

What about businesses?

Currently, double cab pick-ups qualify for van tax treatment, allowing businesses to claim capital allowances for vans at 100%
Fleets will face higher income tax and National Insurance bills.
Fuel benefits will also be more expensive.

Transitional Rules:
Pick-ups purchased, leased, or ordered before April 6, 2025, can use the current tax treatment until the earlier of disposal, lease expiry, or April 5, 2029.

This move follows years of debate around whether vehicles like double cab pick-ups are cars or vans for tax purposes. Similar cases have seen HMRC reclassify other vehicles, such as VW Transporters, as cars.

Action Needed:
If you're considering a double cab pick-up for your business, review your plans now to avoid costly surprises later. Fleets should also review HMRC's guidance on vehicle classifications.

Have questions about how this will impact you? 🤔 Drop them below or get in touch!

www.ckwca.co.uk
0161 432 2633

06/08/2024

New Tips Rule in the UK - What Employers Need to Know

Introduction

From 1st October 2024, a significant change will come into effect with the new Employment (Allocation of Tips) Act, mandating that employees receive 100% of their tips. Here’s what you need to know to comply and how you can benefit from operating a tronc scheme.

Key Details for Employers

• 100% Tips to Staff: Pass all tips directly to staff without deductions.
• Fair Distribution: Distribute both cash and card tips fairly among staff.
• Compliance: Update your tipping policies to ensure compliance.

Benefits of Tronc Schemes

• Reduce NIC Liabilities: Appoint a tronc master to manage tips.
• Tax Efficiency: Tronc schemes can make tips exempt from National Insurance Contributions, reducing payroll costs.

Implementing Tronc Schemes

1. Appoint a Tronc Master: Responsible for collecting and distributing tips.
2. Set Up a Tronc System: Outline how tips are pooled and distributed.
3. Communicate with HMRC: Ensure compliance with HMRC guidelines.

Conclusion

The new tips rule ensures fair treatment for employees and offers opportunities for employers to optimize operations. Implementing a tronc scheme can help reduce NIC liabilities.

Contact CKW Chartered Certified Accountants on 0161 432 2633 for assistance with tronc schemes or any questions about the new rule. We’re here to help you stay compliant and efficient.

www.ckwca.co.uk

CKW Chartered Certified Accountants providing Accounting, Tax Planning, Payroll & Consulting services

03/10/2023

HMRC corrects guidance on company EV car charging

Occasionally, HMRC publishes guidance that is at odds with what the legislation says. A recent example of this is in respect of reimbursement for the costs of charging company-owned electric vehicles.

The tax and NI rules surrounding wholly electric vehicles (EVs) are more generous than for other company cars. This treatment extends to reimbursement of costs incurred by an employee in charging the EV. However, until recently HMRC’s guidance stated that where an company-owned EV was available for private use, any reimbursement is taxable as earnings. But this is inconsistent with a specific exemption in the legislation. There is also currently no specific fuel benefit for EVs, as HMRC does not consider electricity a fuel.

HMRC’s guidance at EIM23900 has now been updated to make clear that “The exemption under s.239(2) ITEPA 2003 means there is no separate charge to tax under the benefits code where an employer reimburses an employee for the cost of electricity to charge their company car at home.” The NI position is the same. However, HMRC does state that employers must ensure that the reimbursement made towards the cost of the electricity is solely for the company car.

The tax benefits of purchasing an EV as a company car are certainly worth considering the switch. If you would like to know more then please get in touch.

17/02/2023

Happy Friday