The vehicle benefit charges for 2024-25 were announced at Autumn Budget 2024. The government will introduce legislation by statutory instrument in December 2024 to ensure the changes are reflected in tax codes for tax year 2025-26.

Where employees are provided with fuel for their own private use by their employers, the car fuel benefit charge is applicable. The fuel benefit charge is determined by reference to the CO2 rating of the car, applied to a fixed amount. The car fuel benefit charge will increase in 2025-26 to £28,200 (from £27,800).

The fuel benefit does not apply when the employee pays for all their private fuel use.

The standard benefit charge for private use of a company van will increase to £4,020 (from £3,960). A company van is defined as ‘a van made available to an employee by reason of their employment’. There is an additional benefit charge for fuel for a van with significant private use. The limit will increase in 2025-26 to £769 (from £757). If private use of the van is insignificant then no benefit will apply.

Despite an appeal, the Courts recently found against Bolt in relation to their attempts to evade the statutory entitlements of their drivers to a minimum wage and holiday pay.  The ruling confirms that 10,000 Bolt drivers employed on what was erroneously conceived to be an ‘agency arrangement’ as freelance contractors are indeed entitled to minimum pay, sick leave and paid vacations.

Under the Employment Rights Act 1996, National Minimum Wage Act 1998, National Minimum Wage Regulations 2015, and the Working Time Regulations 1998, Bolt’s drivers were considered by the Courts to be ‘exclusive’ employees unless they also drove for other ride-hailing apps or were part of the ‘Link’ scheme.  Bolt’s contention of self-employment was refuted based on its contractual control over their livelihoods and the absence of any valid notion of ‘free agency’. The Courts gave Bolt a scathing rebuke for the fictional nature of its contract that sought to deny any employer-worker relationship with the drivers.

Once again, the attempt to cut costs and responsibilities by creating sham contracts inferring that long-term employees are part-time freelancers has backfired. This ruling reaffirms that such sham contracts are no longer acceptable in the UK and that any employers operating under this attempted abrogation of responsibilities will find themselves on thin ice at tribunals. If you are currently employing any staff on zero-hours contracts or on an extended contractual freelance basis, you are advised to seek legal advice.

New proposals to crack down on subscription traps, have been unveiled by the Department for Business and Trade as the government launches a consultation on measures to make it easier for consumers to get a refund or cancel unwanted subscriptions.

“Subscription traps” are instances where consumers are frequently misled into signing up for a subscription through a “free trial” or reduced price offer. In some cases, if the consumer does not cancel the trial within a set amount of time, they are often automatically transferred to a costly subscription payment plan.

It comes as new figures reveal consumers are spending billions of pounds each year on unwanted subscriptions due to unclear terms and conditions and complicated cancellation routes. Nearly 10 million of 155 million active subscriptions in the UK are unwanted, costing consumers £1.6 billion a year.

Subscriptions can be for anything from magazines to beauty boxes, with many subscriptions having complicated or inconvenient cancellation processes such as phone lines with long waits and restrictive opening hours that can leave consumers feeling trapped.

The consultation sets out proposals to make the refunds and cancellation processes simpler, with a requirement on retailers for greater transparency on their subscription programmes in a way that is proportionate to balance consumer rights without placing unnecessary burdens on businesses.

Determining an acceptable level of pension income for retirement depends on individual circumstances, including lifestyle expectations, health, and financial commitments. However, several guidelines and studies provide benchmarks to assist in planning.

Retirement Living Standards

The Pensions and Lifetime Savings Association (PLSA) outlines three retirement living standards in the UK:

• Minimum Lifestyle: Covers essential needs with some social activities. As of 2024, a single person requires £14,400 annually, while a couple needs £22,400.
• Moderate Lifestyle: Offers more financial flexibility, including short-haul holidays and increased leisure activities. This standard suggests £31,300 per year for singles and £43,100 for couples.
• Comfortable Lifestyle: Allows for luxuries such as long-haul travel and a new car every five years. The recommended income is £43,100 annually for singles and £59,000 for couples.

Average Retirement Incomes

According to government data, the average weekly income for pensioners in 2023 was £267, equating to approximately £13,884 per year. This figure varies regionally, with higher living costs in areas like London potentially reducing disposable income.

Gender Disparities

Studies indicate a gender gap in retirement incomes. Women are projected to receive an average of £12,000 annually, compared to £17,000 for men. This 33% disparity highlights the need for targeted financial planning, especially for women.

Replacement Ratio

A common measure is the replacement ratio, which is the percentage of pre-retirement income needed to maintain lifestyle post-retirement. Typically, replacing 60% to 80% of pre-retirement income is recommended. However, the average retirement income often falls short of this benchmark, underscoring the importance of personalized retirement planning.

State Pension

The UK State Pension provides a foundational income. As of April 2024, the full new State Pension is £221.20 per week, totalling £11,502.40 annually. Eligibility depends on an individual’s National Insurance record, with 35 qualifying years required for the full amount.

Planning Considerations

To achieve a desired retirement income:

• Assess Lifestyle Needs: Determine the lifestyle you wish to maintain and estimate associated costs.
• Calculate Required Income: Use tools like the MoneyHelper pension calculator to estimate the income needed to support your desired lifestyle.
• Review Pension Savings: Evaluate your current pension savings and contributions to ensure they align with your retirement goals.
• Seek Professional Advice: Consulting a financial adviser can provide personalized strategies to optimize retirement income.

In summary, while benchmarks offer general guidance, an acceptable pension income is highly individual. Regularly reviewing and adjusting your retirement plan is essential to meet your specific needs and aspirations.

HMRC has been busy promoting the benefits of using its app. A new advertising campaign launched by HMRC is targeted at 18 to 34 year olds and showcases how the app can help them with their tax affairs and finances.

HMRC’s free tax app is available to download from the App Store for iOS and from the Google Play Store for Android. The latest version of the app includes updated functionality.

HMRC has recently reported that more than 1.7 million people are already using the HMRC app every month. Users of the app can access services such as making a Child Benefit claim, finding their National Insurance number and a tax calculator to estimate their take-home pay.

Between July and September 2024, 711,382 new users downloaded the app, and there was a 39% increase in app activity compared to the same period last year – up from 20.93 million sessions to 29.22 million. And nearly £300 million has been paid to HMRC via the app so far this financial year.

HMRC’s Director General for Customer Services, said:

‘One of the main priorities for HMRC is improving its customer services and this incredibly useful and user-friendly app is a great example of how tax can be made much easier for people.

Whether you’re a student looking for your National Insurance number or a new parent wanting to claim Child Benefit, the HMRC app has a range of tools for you, at your fingertips. I urge everyone to download it today.’