Drowning in Receipts? A Deep Dive into Expense Claim Solutions

Ah, expense claims. The bane of many a freelancer, small business owner, and even large business employee. Taming the chaos of receipts, approvals, and reimbursements can feel like herding cats. Thankfully, we live in a digital age with a plethora of expense claim solutions vying for our attention. But which one is right for you? Let's break down some popular options and their key features.

The Old School: Spreadsheets & Email (aka, the "DIY Disaster")

• Pros:

  • Free (technically).

  • Customisable (if you're a spreadsheet wizard).

• Cons:

  • Time-consuming.

  • Prone to errors.

  • Difficult to track and manage.

  • Lack of automation.

  • Security risks.

  • A nightmare for audit trails.

  • No mobile functionality.

While initially appealing due to its perceived cost-effectiveness, this method quickly becomes a time sink and a recipe for frustration, especially as your business grows.

Cloud-Based Expense Management Software: Streamlining the Process

This is where the real magic happens. These platforms offer a range of features designed to simplify and automate expense reporting. Here's a look at some common features and examples of popular solutions:

• Key Features:

  • Mobile App: Capture receipts on the go with your smartphone's camera.

  • Automated Data Extraction: Optical Character Recognition (OCR) technology extracts data from receipts, reducing manual entry.

  • Workflow Automation: Set up approval workflows and automate reimbursement processes.

  • Policy Enforcement: Define spending limits and rules to ensure compliance.

  • Integration with Accounting Software: Seamlessly integrate with platforms like Xero, and others.

  • Reporting and Analytics: Gain insights into spending patterns and identify areas for cost savings.

  • Mileage Tracking: Automatically track mileage using GPS.

  • Currency Conversion: Handle international expenses with ease.

• Examples:

  • Wise: Lots of international travel? Maybe Wise is the expense management system for you.

  • Dext: Mileage tracking and expense claim management, no problem for Dext.

  • Apron: This new kid on the block is releasing expense management cards soon. Watch this space!

  • Pleo: Pleo claims to be the leading spend management platform in Europe - check them out.

Choosing the Right Solution: Factors to Consider

When selecting an expense claim solution, consider the following factors:

• Business Size and Needs: A small business might find a simpler, more affordable solution sufficient, while a large enterprise may require a more robust platform with advanced features.

• Budget: Expense management software comes in a range of pricing tiers. Evaluate your budget and choose a solution that offers the best value for your needs.

• Ease of Use: A user-friendly interface is crucial for adoption and efficiency.

• Integration Capabilities: Ensure the software integrates with your existing accounting and other business systems.

• Mobile Functionality: A robust mobile app is essential for capturing receipts and managing expenses on the go.

• Customer Support: Choose a provider with reliable customer support to assist with any issues.

• Security: Ensure the solution has good security measures to protect your financial data.

The Verdict: Embrace Automation

While spreadsheets and email might seem like a quick fix, they ultimately lead to inefficiencies and potential errors. Investing in a cloud-based expense management solution can save you time, reduce costs, and improve compliance. By automating the process, you can focus on what matters most: growing your business.

Remember to research and compare different solutions to find the one that best fits your specific needs, or get in touch to discuss your needs further. Happy expense claiming!

Making Tax Digital for Income Tax (MTD for IT)

There has been much discussion about Making Tax Digital for Income Tax but what is it and what does it mean for you.

What is MTD for IT?

MTD for IT is a fundamental change in the way that Sole Traders and landlords report their income to HMRC, moving away from the annual filing of the self assessment tax return to a quarterly return of the Income and expenses from the business or property letting followed by an end of year return to include all other income sources. 

MTD for IT requires that the business maintains digital business records and uses HMRC approved software to file its quarterly updates. 

There is no requirement to pay tax quarterly and the normal payment dates of 31 January and 31 July each year remain the same.

Who does MTD for IT apply to?

MTD for Income Tax applies to Sole traders and Landlords, it does not apply to partnerships, LLP’s, Trusts or Companies…. at the moment! If you are not a sole trader or a landlord you continue to file your tax returns on the Self Assessment system as normal.

I’m a sole trader or a landlord - when do I have to start filing under MTD for IT?

Transfer (mandation) on to the MTD for IT system is being phased in from 6 April 2026 based on turnover levels reported on the 2024/25 Self assessment returns to be filed between April 2025 and January 2026

• If your combined turnover for all sole trader and landlord activities is more than £50,000 your start date is 6 April 2026

• If your combined turnover for all sole trader and landlord activities is more than £30,000 your start date is 6 April 2027

• If your combined turnover for all sole trader and landlord activities is less than £30,000 your start date has not been confirmed yet

Once you have filed your 2024/25 self assessment tax return you will know your start date and once you are in MTD for IT you will remain in for 3 years even if your turnover drops below the threshold.

I need to start filing under MTD for IT from 6 April 2026 - what do I need to do?

Firstly you need to think about where you are now:

• How you currently maintain your business records?

• How much do you want to continue doing yourself and how much help do you want from your accountant?

• Are you tech savvy - Will you feel comfortable making quarterly returns yourself? 

Once you have thought about these questions, talk to your accountant. We are all making preparations for this change and are here to help.

Next, choose some suitable software again speak to your accountant about what they would recommend for you - there are currently 17 companies listed with compatible software with 14 in development so lots of choice.

We’ve partnered with Dext Solo and Xero to support our clients with MTD for IT.

What are the deadlines for MTD for Income Tax?

Quarterly updates must be filed by the 7th of the month following the end of the quarter - the quarters and deadlines are: 

The end of year update must be filed by 31 January following the end of the tax year in line with the current self assessment filing date.

What happens if I don't file my quarterly returns under MTD for IT?

If you file your returns late or not at all you will receive a penalty point and once the points threshold is reached, a financial penalty will be imposed. 

Conclusion

Preparation is essential to make sure that you are ready for MTD for IT when it arrives. We strongly recommend that if you are not maintaining your records digitally already that you start as soon as you can to get ahead of the change. Speak to your accountant, we’re here to help.

If you need further assistance with this, get in touch!

Building a Sustainable Business! A path to a greener future.

In today’s rapidly changing world, sustainability is no longer just a buzzword—it’s a critical component for businesses that want to thrive long-term. Sustainable business practices are essential not only for the health of the planet but also for the growth and resilience of companies.

By adopting sustainable practices, businesses can reduce their environmental footprint, improve their brand reputation, and build a more loyal customer base and reduce risks.

Just look at the recent success story of Wild, a body care company founded in 2019 with sustainability at the heart of its business.  They are now under the radar of Unilever who are expected to announce a deal to acquire them for £230 million.  

Why Sustainability Matters for Businesses

Sustainability is defined as meeting the needs of the present without compromising the ability of future generations to meet their own needs. This can involve a range of actions, from reducing carbon emissions and waste to fostering ethical supply chains. The importance of sustainability in business has grown in recent years due to several factors:

1. Environmental Impact: Climate change, pollution, and resource depletion have highlighted the need for businesses to act responsibly in how they consume resources and produce waste. Companies are now being held accountable for their environmental impact, and those that don’t take steps to reduce it may face legal, financial, or reputational risks.

2. Consumer Expectations: Today’s consumers are more eco-conscious than ever before. They are actively seeking out brands that align with their values, which often includes an emphasis on sustainability. Brands that fail to incorporate green practices risk losing market share to more environmentally aware competitors.

3. Regulatory Pressures: Governments around the world are introducing more stringent environmental regulations. Businesses that fail to comply may face fines or penalties. Additionally, regulations favoring sustainable practices often provide incentives for early adopters.

4. Long-Term Profitability: Sustainable practices often lead to greater efficiency, lower operational costs, and improved profitability over time. For example, businesses that reduce energy consumption or waste can see significant cost savings, contributing to their bottom line.

Key Strategies for Building a Sustainable Business

Building a sustainable business requires a holistic approach. Here are several strategies that businesses can implement:

1. Energy Efficiency

One of the most significant ways businesses can become more sustainable is by reducing their energy consumption. This can involve upgrading to energy-efficient equipment, optimising heating and cooling systems, and transitioning to renewable energy sources like solar or wind. Many businesses are also adopting energy-saving practices such as turning off equipment when not in use or implementing energy management systems.

2. Sustainable Sourcing

Sourcing materials responsibly is another key aspect of sustainability. Companies can choose to work with suppliers that follow sustainable practices and prioritise ethical production. For instance, businesses can source materials that are certified by organisations such as the Forest Stewardship Council (FSC) or the Rainforest Alliance, ensuring that the products they sell are not contributing to deforestation or other environmental harm.

3. Waste Reduction

Minimising waste is critical for both environmental and economic reasons. Implementing strategies such as reducing, reusing, and recycling materials can help businesses cut down on their waste production. Additionally, companies can take steps to improve packaging, opting for recyclable or biodegradable materials over plastic and other non-recyclables.

4. Eco-Friendly Products and Services

Offering products and services that are sustainable or environmentally friendly is a great way for businesses to appeal to eco-conscious consumers. This could include products made from recycled materials, services that help customers reduce their environmental impact, or even packaging that minimises waste. By positioning their offerings as sustainable alternatives, businesses can tap into a growing market of consumers who prioritise green products.

5. Green Certifications

Obtaining certifications such as B Corp, LEED (Leadership in Energy and Environmental Design), or Fair Trade can help businesses demonstrate their commitment to sustainability. These certifications not only give companies credibility but also attract customers who prioritise environmentally and socially responsible companies.

The Benefits of Sustainability for Businesses

Adopting sustainable business practices not only helps the planet but also provides significant advantages for companies. Here are a few of the benefits:

1. Improved Brand Reputation: Companies that are seen as environmentally responsible often build stronger reputations and customer loyalty. In today’s digital age, where customers can easily access information about a brand, demonstrating sustainability can make a significant difference in attracting and retaining consumers.

2. Cost Savings: Energy efficiency, waste reduction, and sourcing sustainable materials can lead to lower operational costs. For example, companies that reduce their energy usage and implement waste-reduction practices often see a direct reduction in expenses.

3. Increased Innovation: A focus on sustainability encourages businesses to innovate. This could mean finding new ways to reduce waste, develop eco-friendly products, or improve the supply chain. This innovation can create a competitive edge in the marketplace and open up new revenue streams.

4. Attracting and Retaining Talent: Many employees today are drawn to companies that prioritise sustainability. By fostering a work culture that values environmental responsibility, businesses can attract top talent who want to be a part of positive change.

5. Risk Management: By addressing environmental issues early on, businesses can mitigate future risks associated with climate change, supply chain disruptions, or regulatory changes. Sustainability practices can act as a form of long-term risk management.

Conclusion: The Future of Sustainable Business

As we look toward the future, sustainability will only become more integral to business success. Consumers, investors, and governments are increasingly demanding that businesses adopt greener practices. Those that embrace sustainability today will not only contribute to a healthier planet but also position themselves for long-term growth and success.

For businesses, the shift toward sustainability is no longer an optional strategy—it’s a necessary one. By integrating sustainable practices into their operations, companies can not only do their part for the environment but also unlock a range of economic, social, and brand-related benefits. In the end, sustainable business is not just good for the planet—it’s good for business.

Spring Clean Your Accounting Processes

Spring is a time for new beginnings, and what better way to embrace the season than by decluttering and organizing your accounting processes? Just as you might tidy your home, a spring clean of your financial workflows can bring clarity, efficiency, and peace of mind.

Here are some suggestions.

• Identify Areas for Improvement - Start by taking stock of your current accounting practices. Where are the bottlenecks? What tasks take longer than they should? Are there any recurring errors or discrepancies? By pinpointing these areas, you can focus your efforts on the processes that need the most attention. 

• Streamline Your Workflows - Once you've identified areas for improvement, look for ways to streamline your workflows. This might involve automating tasks, implementing new software, or simply creating clearer procedures.

• Review and Update Procedures - Outdated procedures can lead to confusion and errors. Take the time to review and update your accounting policies, ensuring they are clear and concise.

• Embrace Technology - Technology can be a powerful tool for streamlining your accounting processes. Explore software options that can automate tasks, generate reports, and provide real-time insights into your financial data. 

• Regular Maintenance - A spring clean is not a one-time event. To maintain an efficient and organised accounting system, schedule regular check-ins and reviews. This will help you identify and address any emerging issues before they become major problems.

By spring cleaning your accounting processes, you can create a more efficient, organised, and stress-free financial system, freeing you up to achieve your goals, whether that’s growing the business or starting a new hobby.

If you need some help with your (financial!) spring clean, get in touch.

Beanie Bot - A new team member?

Please welcome our new member to the Lodestar Dream Team; Beanie Bot!

Actually no…scrap that! 

We love technology here at Lodestar and embrace the benefits that AI can bring to business. BUT, AI will never replace the value of people and what they can bring to the table for our company and clients.

We’re always looking for ways to improve the services we provide and in today's fast-paced business environment, organisations are constantly looking for ways to improve efficiency and productivity. One way to achieve this is by leveraging artificial intelligence (AI) and bots. 

To make our work even more efficient, accurate, and secure, we’ve introduced Beanie Bots into our team. These Bots handle repetitive tasks within our bookkeeping processes, freeing up time for our team to focus on providing you with exceptional service and expert advice.

With the automation of these data entry tasks, this frees up our team to focus on the people aspect of our business such as building client relationships, understanding our clients business and goals, providing more strategic and advisory work.

The people in our team are more important than AI as they have the capability to understand our clients and guide them into achieving things they never imagined were possible with their business. Genuine connection and authentic communication are fundamental to how we work. It’s why we focus on establishing sincere, human-led client relationships.

We value the automation that this software is giving to us and appreciate that the Beanie Bot was working hard on those data entry tasks whilst our team enjoyed a well deserved Christmas shutdown!

Here’s what you should know about Beanie Bots: 

Secure and Controlled: The Bots operate within our systems under secure user accounts, with data access strictly limited to the tasks at hand. All your data remains safe and encrypted.

 Error-Free Accuracy: They ensure routine processes are completed without error, enhancing the reliability of our work.

 Still Us Behind the Scenes: Our team remains in control and continues to oversee everything to ensure top-notch service.

If you have any questions about this or would like more information on the bookkeeping services we can provide, feel free to reach out. We’re happy to chat and explain how these Bots are helping us enhance the value we bring to you.

Keeping HMRC Happy: Navigating the UK Tax Maze of Travel and Entertainment Expenses

The world of business travel and entertainment can be a bit of a minefield when it comes to tax. What can you claim? What can your employees claim? And what will land you with a hefty tax bill? Let's break down the key differences in how the UK tax system treats travel and entertainment expenses for staff versus clients.

Travel Expenses: Generally Deductible

The good news is that genuine business travel expenses are usually tax-deductible. This applies to both you and your employees. Here's what HMRC generally considers acceptable:

• Travel to a temporary workplace: If you or your employees need to travel to a location different from your normal workplace for a temporary assignment, the travel costs are usually deductible.

• Business trips: Travel costs for attending conferences, meetings, or visiting clients are typically allowed.

Important Note: The travel must be necessary for the business, and the expenses must be reasonable. Commuting to your normal place of work is not deductible.

Staff Entertainment: A Tricky Area

When it comes to entertaining staff, things get a bit more complicated. Here's the general rule:

• Tax deductions for entertaining staff. HMRC generally allows deductions for costs incurred when entertaining staff provided that it is wholly and exclusively for business purposes and is not excessive. This includes things like staff parties, team lunches, or social events.

• Benefits in kind for employees. Although the expenditure is allowable for the business the employee may have to pay income tax on the entertainment received from the employer. In this event many employers choose to include these items in a settlement with HMRC known as a PSA.

• Other examples:

• Annual events: You can hold an annual event for staff, such as a Christmas party, and the cost may be tax-deductible up to a limit of £150 per head and tax free for the employee. This event must be open to all staff.

• Trivial benefits: Read our blog here around Christmas parties and trivial benefits. 

Client Entertainment: Proceed with Caution

Entertaining clients can be a valuable business tool, but the tax rules are strict. Here's what you need to know:

• No tax deduction for most client entertainment. HMRC generally disallows deductions for the cost of entertaining clients. This includes taking clients to dinner, sporting events, or the theatre.

• Exceptions: Again, there are limited exceptions:

• Overseas clients: Entertainment expenses for overseas clients may be deductible in certain circumstances.

• Incidental entertainment: If the entertainment is incidental to a business meeting with a clear business purpose, it may be allowed.

Key Takeaways

• Keep accurate records: Meticulous record-keeping is essential to support any expense claims.

• Understand the rules: The rules around travel and entertainment expenses can be complex. When in doubt, seek professional advice from an accountant or tax advisor.

• Consider alternatives: Explore alternative ways to reward staff or build client relationships that don't involve lavish entertainment and may be more tax-efficient.

By understanding the UK tax treatment of travel and entertainment expenses, you can ensure your business remains compliant with HMRC regulations while effectively managing your expenses.

Autumn Budget 2024 deeper dive - Businesses

There was a huge amount of information within the budget documents so here are the main points for businesses.

What hasn’t changed?

• The main rate of Corporation tax is still at 25% and appears to be capped for the duration of this parliament

• Full expensing on capital items and the £1m Annual Investment Allowance remain unchanged

• Research and Development Tax Credits rates have not been changed 

• VAT rates remain the same

• Fuel Duty is frozen and the temporary 5p cut announced in March 2024 has been extended to 22 March 2026

Now for the changes…

Employers National Insurance:

The big news coming out of the budget for businesses, was the increase in the employer National Insurance rates. We have put together some simple calculators to assess the impact of these changes for your business, contact us here and we can send these over to you 

The headline changes on Employers National Insurance Contributions are :

• From April 2025 the rate of contributions is increasing by by 1.2% from 13.8% to to 15% 

• From April 2025 the threshold at which employers start to pay contributions on an employees salary reduced from £9,100 down to £5,000

• To ease the burden of these increases the employment allowance is raised from £5,000 to £10,500 also from April 2025. There is no change to the restrictions on who can claim the employment allowance with Sole director companies still excluded and groups of companies only having one allowance between them

• The increase in the employer's NIC rate also applies to Class 1A contributions paid on benefits in kind and Class 1B contributions paid on PAYE settlement agreements.

• Salary sacrifice arrangements with employees can help reduce the impact of these rises

National Living Wage Increases from April 2025

• The hourly rate for over 21’s  is increasing from £11.44 to £12.21 ph an increase of 6.7%

• The rate for 18-20’s is increasing from £8.60 to £10ph

• Under 18’s and apprentice rates are increasing from £6.40 to £7.55 ph

Company vehicles

• Double cab pick ups - see our blog post here on these changes from April 2025

• The 100% first year allowances for companies purchasing electric vehicles was due to come to an end in March 2025 but this has been extended for 12 months to March 2026.

• Company car tax rates for company car drivers have been announced up to 2029/30. The percentages that apply up to 2028 are here. Electric car rates will increase by 2% each year, rising to 7% in 2028/29 and 9% in 2029/30.

• The hidden surprise was for hybrid company car drivers whose percentage is calculated by reference to the number of zero emissions miles their vehicle can do. This condition is being removed and all hybrids will have a fixed percentage of 18% for 2028/29 and 19% for 2029/30 an increase of 13% for the worst hit!

• All other company car rates will increase by 1% each year.

As always, get in touch if you need any help or have questions!

Autumn Budget 2024 deeper dive - Individuals

There was a huge amount of information within the budget documents so here are the main points for individuals.

What hasn't changed

• Income tax rates and thresholds remain the same and continue to do so until 2028/29. The government have said that they will then rise in line with inflation reducing the “fiscal drag”

• Employees and self employed  National Insurance contributions rates have not changed.

• The abolition of the Furnished holiday letting regime is still going ahead from April 2025.

• There have been no changes to tax relief on pension contributions or the ability to draw a tax free lump sum from your pension pot. 

• ISA investment limits remain fixed at their current levels until 2030.

• High Income child benefit charge (HICBC) - The previous government proposed in the spring budget to move to a household income based charge rather than the current charge based on the highest earners income. It was confirmed in the budget that this proposal will not be considered further and the current system will remain unchanged. The increased income threshold of £60,000 for 2024/25 onwards hasn't been changed.

Now, for the changes….

Capital Gains Tax

It was expected that Capital Gains Tax rates would increase and this was confirmed in the Autumn Budget. Here are the new rates:

• The lower rate of 10% for basic rate tax payers has increased to 18% and the higher rate of 20% for higher rate taxpayers has increased to 24% with effect from budget day - 30 October. This change aligns the rates with the higher rates for disposals of residential properties so we are back to having just the two rates again.

• Business asset disposal relief - this relief applies where an individual disposes of their business, or shares in their qualifying company, and previously the rate was 10% on the first £1m of gain and 20% thereafter. The lifetime limit of £1m remains but the rates of tax are going up as follows

• Disposals between budget day and 5 April 2025 - no change - 10% on first £1m of gain then 20%

• Disposals between 6 April 2025 and 5 April 2026 - 14% on first £1m of gain and then 24%

• Disposals after 6 April 2026 - 18% on first £1m of gain and then 24%

Inheritance tax

The major change here is for businesses owners and farmers. Previously the value of qualifying business property (shares, land and business assets) was relieved from Inheritance tax. From April 2026

• Business property relief and agricultural property relief will be 100% of the first £1m of asset value

• Relief is restricted to 50% on the asset value over £1m giving an effective IHT rate of 20%

• Business property relief is also restricted to 50% on unquoted AIM listed shares (previously 100%) 

Another change to be aware of, Inherited pensions funds are generally outside of a person's estate for Inheritance tax purposes however from April 2027 these funds will become part of a person's taxable estate and subject to Inheritance Tax at 40% (on current rates)

Stamp Duty Land Tax (SDLT)

The additional rate for the purchase of any additional residential properties increased from 3% to 5% from 31 October 2024

Non UK domiciled individuals

The current regime is being scrapped in favour of a residence based scheme. This is a really complex area which requires specialist advice so we won't go into the details but it will apply to individuals arriving in the UK and becoming resident in the UK with overseas income and gains. 

Making Tax Digital for Income Tax (MTD for ITSA)

It is now confirmed that MTD for ITSA will go ahead from April 2026 after a number of delays.

MTD will affect individual sole traders and landlords with those having a combined turnover of £50,000 or more in the 2024/25 tax year joining the scheme from April 2026. In April 2027 those with combined turnover of £30,000 or more will join the scheme. The government confirmed those with combined turnover of £20,000 or more will eventually join but the date is unconfirmed. Check out our MTD blog for more detailed information.

Contact us to chat about any of the budget announcements or your personal tax situation.

Dext - New features alert!

Here at Lodestar, we know that time is your most valuable resource.

Running a business means balancing multiple tasks everyday—and when it comes to accounting, it can often feel like you’re drowning in paperwork and receipts. 

When we look after your bookkeeping, you will be set up onto a software called Dext. Recently, Dext has introduced some fantastic new features that can save you even more time, reduce manual errors, and make your financial management smoother and more accurate.

In this blog post, we’ll walk you through some of the latest updates coming to Dext and explain how these new tools can help your business stay organised and efficient.

Upload PDF Files Directly via the Dext Mobile App

As a business owner, you're probably always on the go. Whether you're meeting clients, attending events, or managing daily operations, you don't always have the time to sit down at your desk to process your receipts and invoices. But now, with Dext’s new mobile app feature, uploading PDF files has never been easier. 

Using the in-app gallery (available on both iOS and Android devices), simply snap a photo or select your PDF file and send it directly into Dext’s secure system.

Dext has also added Share Sheet importing - with just a few taps, you can select and upload documents straight to your Dext account, whether they’re saved in your cloud storage, local file system, or elsewhere.

Track Your Mileage with Ease Using Dext

Dext’s Mileage Tracking feature allows you to easily track and log the miles you drive for business purposes, so you never miss out on potential tax deductions. Whether you’re attending client meetings, running errands, or driving between business locations, you can automatically record your mileage, making it easier to track your business vehicle use.

Some of the key features include:

• Automatic Trip Logging with GPS tracking

• Simple Categorisation

• Customisable Rate for Tax Deductions

• Manual Entry Option

Whether you’re driving a company car or using your personal vehicle for business, Dext’s Mileage Tracking feature ensures you don’t miss a mile. With automatic tracking, easy categorisation, and quick reporting, Dext takes the hassle out of mileage logging and makes sure you can claim every eligible mile when tax time comes.

If you need help getting started with Dext, have questions about any of the latest features, or need assistance with your general bookkeeping, our team is ready to support you every step of the way.

Double Cab Pickups - car or van? It depends.... (and it's changed!)

What is a Double cab pickup?

It is a vehicle that has a front passenger cab with a second row of seats to fit around 4 passengers plus the driver. It has 4 separate doors, and an uncovered pickup area at the rear.

These have been a popular purchase for businesses to use as company vehicles. They are big enough to use as a work vehicle yet also suitable for day to day personal/family use.

And…as long as the model chosen had a payload of at least 1 Tonne, it could be treated as a commercial vehicle for company tax purposes, making it a tax efficient option as well as a practical one.

Earlier this year there was a decision to change the tax treatment of these vehicles by HMRC that was very quickly overturned.

However, in the October budget, it has been reviewed again and from April 2025 these vehicles will now be taxed as cars.

This means: 

• Lower Capital allowances- No first year allowances or Annual Investment Allowances.

• Benefit in Kind value will be higher - The benefit will be based on the value of the vehicle, its fuel and its emissions, rather than the flat rate for commercial vehicles. This will cost the company more in Class 1A National Insurance, and the user of the vehicle will have a higher personal tax bill.

In short, it will become much less tax efficient to have a double cab pickup as a company vehicle. 

Any purchase of double cab pickups before 1 April 2025 will still be treated under the old rules..

For Benefit in Kind purposes,  there will be a transitional arrangement meaning a double cab pick up purchased prior to 1st April 2025 can be treated as a commercial vehicle until the earlier of - its disposal, the lease expiry or 5th April 2029.

So… if you were thinking of getting a double cap pickup, it may be worth doing so before 1st April 2025.