Budget 2024: Key Changes That Could Impact Your Business

Following November’s budget announcement, have you considered how upcoming changes might affect your business? Our partners at WR Partners – experts in accountancy, tax, and business advisory – share essential updates to keep you ahead of the curve.

National Insurance Contribution Changes: What You Need to Know

From 6 April 2025, the monetary thresholds for micro, small, and medium-sized entities will change. This means:

✔️ New eligibility criteria will apply for businesses qualifying under different size categories.
✔️ Companies and LLPs must ensure they meet the revised thresholds.

Want to dive into the details? Click here for a full breakdown.

Tax Shake-Up for Double Cab Pick-Ups 🚗

A major tax rule change is coming from 6 April 2025, and it could significantly impact businesses using double cab pick-ups. Here’s what you need to know:

🚨 Double cab pick-ups will now be classified as cars for tax purposes instead of commercial vehicles.
📉 This affects capital allowances and benefit in kind (BIK) company car tax.

Key Changes:

• HMRC will no longer follow VAT classification rules for these vehicles.
• Vehicles will now be assessed based on their overall construction rather than payload.
• Most double cab pick-ups will now be taxed as cars rather than commercial vehicles.

Transitional Arrangements:

If your vehicle was purchased, leased, or ordered before 6 April 2025, you may still qualify under the old rules. Here’s what applies:
✅ Benefit in kind tax – The old rules remain in place until the vehicle is disposed of, the lease expires, or 5 April 2029 (whichever comes first).
✅ Capital allowances – The old rules apply if your contract is entered before April 2025 and paid for by October 2025.

VAT: No Changes!

Good news – VAT treatment remains the same! If your pick-up has a payload of 1 tonne or more, it still qualifies as a goods vehicle for VAT purposes.

Need Help Navigating These Changes?

If you’re unsure how these tax and business updates affect you, WR Partners is here to help. Get in touch at 08000 664 664 or email hello@wrpartners.co.uk for expert advice.