Good afternoon,
Following the UK Budget on 28th October, we have picked out some of the announcements that are most relevant to our clients.
This newsletter concentrates on tax changes that will affect employers, including one director limited companies.
The next edition will focus on income tax, capital gains tax & savings changes.
For Scottish taxpayers this is only part of the picture. The Scottish Budget is scheduled for 3rd December, when we will hear more about the Scottish Government’s tax and spending plans for 2027-28.
The following hourly rates will apply across the UK, including Scotland from April 2027:
Age 21 & over
£12.71 -> £13.21 per hour
Age 18-20
£10.85 -> £11.27 per hour
Under 18 (plus apprentice rate where applicable)
£8.00 -> £8.31
No change was made in National Insurance for employers.
The Lower Earnings Limit will rise to £133 per week from 2027/28.
For employees using their own cars or vans for qualifying business journeys:
– The 55p per mile rate for the first 10,000 business miles, effective from 6 April 2026, has become permanent.
– The rate for business mileages above 10,000 miles increased from 25p per mile to 35p from 6 April 2027.
Employers should review their mileages policies and expense systems where appropriate.
If your business provides company cars, private medical insurance or other taxable benefits to employees or directors?
From 6 April 2027, employers across the UK will be required to report the following taxable benefits through payroll:
– Company cars & vans
– Company car & van fuel
– Employer-provided medical benefits, including private medical insurance.
If we process your payroll & you have new benefits in kind that we may not be aware of from 6 April 2027, you must notify us of these taxable benefits to report on your payroll.
This changes both the reporting process and the timing of the payment of Class 1A NIC liabilities to a real-time basis. Employers wishing to payroll non-mandated benefits from April 2027 must register to do so