Afternoon
Although the clocks don’t change until the end of March, we are starting to see the first signs of Spring coming through and here at AMR we have continued to be busy posting blogs on our website and social media channels. Please follow us on LinkedIn or Facebook to keep up to date with all of our guides and suggestions to keep your business on track with its bookkeeping and payroll requirements.
Minimum Wage Increase
1 April 2024 will not only see an increase to the National Living Wage but also the age in which this starts will be extended to those over the age of 21 (previously only for age 23 and over).
In addition, the Chancellor announced in his Spring budget a further 2% cut from April 2024 on Class 1 National Insurance bringing the rate down to 8%.
| Rate from April 2024 | Current rate (April 2023 to March 2024) | |
| National Living Wage | £11.44 | £10.42 |
| 21-22 Year Old Rate | Will now receive National Living Wage | £10.18 |
| 18-20 Year Old Rate | £8.60 | £7.49 |
| 16-17 Year Old Rate | £6.40 | £5.28 |
| Apprentice Rate | £6.40 | £5.28 |
We recently wrote a blog explaining the difference between National Minimum Wage and National Living Wage which can be found on our website – https://amrbookkeeping.co.uk/news/national-living-wage-national-minimum-wage-whats-difference/
VAT Registration Threshold
The Chancellor also announced in his budget on 6 March the turnover limit for compulsory VAT registration will be increased from £85,000 to £90,000 from April 2024.
When is a van not a car?
In a screeching U-turn HMRC have recently confirmed they will be scrapping the updated guidance on double cab pickups, and these will continue to be treated as goods vehicles for tax purposes and the tax on benefits in kind rather than cars.
On 12 February 2024 updated guidance on the tax treatment of double cab pickups which was set to come into effect on 1 July 2024 and would see any double cab pickups with a payload of one tonne or more would be treated as cars for both capital allowances and benefit in kind purposes. Since then, HMRC have listened to views from farmers and the motoring industry on the potential impacts of the change in tax treatment and have withdrawn this guidance.
If you have any queries then please feel free to contact us.
Many thanks
The AMR Team
