DOUBLE-CAB PICKUPS TO BE CLASSED AS CARS UNDER NEW HMRC POLICY

Avrupa TIMES/London-This change, outlined in the Budget Red Book, reverses earlier decisions that caused uncertainty over the taxation of these vehicles. Previously, HMRC had briefly classified double-cab pickups as cars in early 2024, only to revert to van status a week later. The reclassification now stems from the 2020 Court of Appeal case, Payne & Ors (Coca-Cola) vs R & C Commrs, which questioned the tax treatment of vehicles with a payload of one tonne or more. Under the new rules, double-cab pickups will be treated as cars for corporation tax from 1 April 2025 and for income tax from 6 April 2025. The change will affect capital allowances, benefits in kind and certain business deductions. However, transitional arrangements will allow employers who purchase, lease or order these vehicles before the cut-off date to continue benefiting from the previous tax treatment until 2029.

HMRC has indicated that this ruling is aimed at ensuring consistency in tax treatment across similar vehicles.

TUITION FEES SET TO RISE FOR FIRST TIME IN EIGHT YEARS

The Education Secretary, Bridget Phillipson, has announced an increase in tuition fees from £9,250 to £9,535 per year starting in September 2025. This is the first fee increase in eight years, with further plans aiming to exceed £10,000 by the 2029/30 academic year. Phillipson outlined the rise as part of a strategy to support universities’ financial stability and deliver “better value for money” for students and taxpayers.

GOVERNMENT CHAMPIONS HEALTH BENEFITS OF WORK IN NEW INITIATIVE
The WorkWell programme aims to support health through work. On 6 November 2024, the Secretaries of Work and Pensions, Liz Kendall, and Health, Wes Streeting, visited North Central London’s WorkWell programme. They highlighted the importance of good health in fostering a productive workforce.

BANK OF ENGLAND CUTS INTEREST RATES TO 4.75%

Monetary Policy Committee (MPC) reduces rates amid signs of easing inflation. This cut follows a previous hold, with the MPC voting to decrease rates from 5% to 4.75%.

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