Mandatory Payrolling of Benefits Delayed
HMRC has confirmed that the mandatory payrolling of benefits in kind (BIKs) will be delayed to April 2027, giving businesses more time to prepare for the transition. The change will require businesses to process income tax and Class 1A national insurance contributions in real time via payroll, rather than declaring them annually on P11D forms.
Childcare Costs - Don’t Miss Out
The Government’s tax-free childcare scheme provides up to £2,000 a year per child (or £4,000 if disabled) towards wraparound care and holiday clubs. To qualify, parents/partners must earn at least the minimum/living wage for 16 hours a week and no more than £100,000 per annum.
HMRC has also reminded parents of the deadline to extend child benefit for 16 to 19-year-olds continuing in full-time education from September.
Guidance for Non-Doms with Foreign Income and Gains
With effect from 6 April 2025, the preferential tax treatment for non-UK domiciled individuals (“non-doms”) has been withdrawn. A new residence-based system exempts foreign income and gains (FIG) for only the first four consecutive years of UK residence, provided the individual was not resident in the UK in any of the ten years prior to arrival.
Summer 2025 Newsletter PDF (Issue 41)
Download the full Summer 2025 issue covering mandatory payrolling delays, childcare costs, and new non-dom tax regimes.