Several major HMRC tax changes are coming into effect from April, impacting businesses across the UK. Employers face higher payroll costs, tax reliefs are shifting, and vehicle classifications are changing. With limited time left, businesses must prepare now to avoid financial strain.
Key Changes from April 2025
- Increase in employer national insurance contributions – The rate rises from 13.8 percent to 15 percent, while the secondary threshold drops from 9,100 to 5,000 per year.
- National insurance employment allowance – Increases from 5,000 to 10,500, with the 100,000 eligibility threshold removed.
- Double cab pick-ups reclassified – These vehicles will now be taxed as company cars for benefit in kind and capital allowances, increasing tax rates.
- Changes to furnished holiday lets – Mortgage interest relief will shift from a deduction to a 20 percent tax credit, reducing relief for higher and additional rate taxpayers.
- Capital gains tax adjustments – Business asset disposal relief and rollover relief may no longer apply to furnished holiday lets.
How to Prepare
- Review payroll costs – The national insurance rise will impact employer contributions, particularly for minimum wage workers.
- Assess vehicle classifications – Double cab pick-ups purchased after April will have higher tax implications.
- Plan for reduced tax relief – Landlords and property owners should assess the financial impact of the furnished holiday lets changes.
- Update tax planning – Capital gains tax adjustments could require restructuring property investments.
The new tax year brings higher costs and shifting rules that businesses cannot afford to ignore. Reviewing tax strategies now can help manage liabilities and prevent unexpected financial pressure.