Our latest Pay Less Tax newsletter is now available, highlighting important tax updates and planning considerations for employers and business owners.
This edition focuses on upcoming payroll changes, employee mileage rules and key person insurance.
Mandatory Payrolling Of Benefits
From April 2027, most employee benefits and expenses will need to be processed through payroll rather than reported annually on P11D forms. Employers will need to calculate taxable values during the year and ensure payroll systems are prepared for the changes.
Employee Own Car Interaction
HMRC approved mileage rates remain at 45p per mile for the first 10,000 business miles and 25p thereafter. Employees may be able to claim tax relief where employers reimburse below these rates.
Key Person Insurance
Key person insurance can help protect businesses financially if a key employee or director becomes seriously ill or dies. The tax treatment of premiums and payouts can vary, so planning is important before putting cover in place.