In this week’s detailed miscellaneous updates which you can read more about below, HMRC has sent an update on employee car ownership scheme changes and the latest bi-monthly Employer Bulletin was published recently.
In other news this week:
- Last month HMRC published its internal manual on the administration of the Multinational Top-up Tax and the Domestic Top-up Tax under the UK’s Pillar Two rules,
- The latest schedule of HMRC Talking Points live and recorded webinars for tax agents are available for booking. Spaces are limited, so take a look now and save your place, and
- Check HMRC’s online services availability page for details of planned downtime and the online services affected.
Update on employee car ownership scheme changes and Euro 6e emissions standard
As part of L-day on Monday 21 July the Government published draft legislation on changes to employee car ownership schemes. The decision has since been taken to delay implementation six months to 6 October 2026. The draft legislation on this remains open for technical consultation prior to final legislation being brought forward at the next Finance Bill. The relevant publications are as follows:
In addition, the Government will be consulting in due course on introducing the Euro 6e emissions standard for cars and vans from April 2026. This standard will introduce more stringent real-world testing for plug-in hybrid electric vehicles (PHEVs) which in turn will lead to higher official CO₂ emission ratings and thus higher benefits in kind (BIKs).
However, it was also announced on L-day that the Government does not intend for this to apply to BIKs until April 2028, in order to avoid significant increases for PHEV company cars. Further details are awaited on how this will work, however the overall intention is to ensure that BIK charges will be based on current emissions standards until April 2028, rather than the new Euro 6e standard.
Latest Employer Bulletin
The August edition of HMRC’s Employer Bulletin includes articles on:
- 2024/25 P11D and P11D(b) forms,
- PAYE settlement agreements: calculations and payments,
- Disputed PAYE charges,
- Preparing businesses for the vaping products duty and the vaping duty stamps scheme, and
- Implementation of the Employment Rights Bill.
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