The Chancellor announced the following measures on employment taxes in his 2023 Autumn Statement.
Van benefit charge and the car and van fuel benefit charges
From 6 April 2024:
- The van benefit charge and the car and van fuel benefit charges will be maintained at 2023-24 levels for 2024-25.
- The van benefit charge will remain at £3,960.
- The van fuel benefit charge will remain at £757.
- The car fuel benefit multiplier will remain at £27,800.
- See Car fuel benefit charges, Company cars, CO2 emissions: Ultra-low emission cars and Van Benefit Charges
Enterprise Management Incentives (EMI): extending the time limit to submit a notification of a grant of options
For options granted on or after 6 April 2024:
- As announced at Spring Budget 2023, legislation in Autumn Finance Bill 2023 will extend the time limit to notify HMRC of a grant of EMI options from 92 days following the grant to 6 July following the end of the tax year in which the grant was made.
- See EMI Share Options
National Living Wage (NLW) and National Minimum Wage (NMW)
From April 2024:
- The NLW will increase to £11.44 per hour and be extended to include those aged 21.
- The NMW for those aged 18-20 will increase to £8.60 per hour.
- The apprentice rate increases to £6.40 per hour.
- See National Living Wage rates/National Minimum Wages rates
Calculation of PAYE liability in cases of non-compliance with Off-Payroll Working
From 6 April 2024:
- For Off-Payroll Working engagements, HMRC will be able to reduce the PAYE liability of a deemed employer, where that engagement has been incorrectly treated as self-employed for tax purposes, to take account of tax and National Insurance Contributions already paid by the worker and their intermediary on the payments received.
- This will apply to Income Tax and National Insurance liabilities assessed under PAYE on or after 6 April 2024 however in practice, HMRC have already been writing to potential deemed employers to offer a pause in settlement negotiations, in preparation for the proposed change in the legislation.
- Provisions will be made to prevent a person from making a claim for the repayment of, or a claim for relief in respect of, any amounts that have been treated as having been recovered.
Reforms to the Construction Industry Scheme (CIS)
From 6 April 2024:
- Those holding or applying for Gross Payment Status must show that they are up to date with their VAT payment and filing obligations in order to retain or be granted gross payment status. These obligations will be in addition to the existing requirements for gross payment status.
- The new measures will also:
- Extend one of the grounds for immediate cancellation of gross payment status to add VAT, Corporation Tax Self-Assessment (CTSA), Income Tax Self-Assessment (ITSA) and PAYE to those taxes where HMRC is able to immediately withdraw gross payment status if they have reasonable grounds to suspect that the gross payment status holder has fraudulently provided an incorrect return or incorrect information.
- Allow for the removal of the majority of landlord-to-tenant payments from the scope of the CIS.
- Digitalise applications for CIS registration.
- Bring forward the first review of a gross payment status holder’s compliance history from 12 months after application to six months, reverting to 12 months thereafter.
See CIS What's new?
Autumn Statement 2023: At a glance
The Chancellor, Jeremy Hunt, presented his Autumn Statement 2023 speech on Wednesday 22 November. This is our 'At a glance' summary of the key tax announcements and measures.
Consultation outcome: Off-Payroll Working: calculation of PAYE liability in cases of non-compliance
Policy paper: Construction Industry Scheme reform from 6 April 2024