More than a third of UK employers plan to reduce the recruitment of permanent staff due to the Employment Rights Act’s (ERA) reforms, says the Chartered Institute of Personnel and Development (CIPD).

A survey published by the CIPD showed that nearly three quarters of employers believe their employment costs will increase because of measures introduced under the ERA.

In addition, more than half of employers expect workplace conflict to increase because of at least one of the changes being introduced.

The survey showed that overall hiring intentions remain at their lowest level on record outside the first year of the pandemic.

Ben Willmott, Head of Public Policy at the CIPD, said:

‘Against a backdrop of low business confidence and already weak hiring intentions, our research suggests there is a real risk that the ERA measures will act as a further handbrake on job creation and recruitment.

‘In response, it’s important that government acts to try and mitigate these potential negative consequences, including through meaningful consultation and where necessary compromise on key measures still to be decided in secondary legislation.

‘We need to see a major communication campaign from government to ensure smaller businesses in particular are aware of, understand and can prepare for the new legal obligations and know when they come in to affect.’

Internet link: CIPD website

New company car advisory fuel rates have been published and took effect from 1 March 2026.

The guidance states: ‘you can use the previous rates for up to one month from the date the new rates apply’. The rates only apply to employees using a company car.

The advisory fuel rates for journeys undertaken on or after 1 March 2026 are:

HMRC guidance states that the rates only apply when you either:

• reimburse employees for business travel in their company cars
• require employees to repay the cost of fuel used for private travel.

You must not use these rates in any other circumstances.

The Advisory Electricity Rate for fully electric cars is as set out below: 

If you would like to discuss your company car policy, please contact us.

Internet link: GOV.UK AFR

HMRC is urging young people who have yet to claim their Child Trust Fund (CTF) to do so during National Apprenticeship Week.

HMRC’s figures show 758,000 young people could be missing out on cash as they have yet to claim the savings in their CTF account.

CTF are long term, tax-free savings accounts which were set up for children born between 1 September 2002 and 2 January 2011 with an initial government deposit of at least £250.

Young people can take control of their account at 16, but once they turn 18 years old the account matures and they can decide whether they want to withdraw the money or re-invest it.

With hundreds of thousands of apprentices under the age of 24 across the UK a CTF worth on average £2,242 each, will give them a financial head start.

Myrtle Lloyd, HMRC’s Chief Customer Officer said:

‘Whether young people are on an apprenticeship, starting their first job, or making plans to go to university, a CTF can make all the difference. Find yours today by searching 'find my Child Trust Fund' on GOV.UK.’

Internet link: HMRC press release

Sole traders and landlords have been warned they need to act now to be ready for Making Tax Digital (MTD) for Income Tax.

HMRC is reminding those earning more than £50,000 from self-employment and property of major changes from 6 April 2026. They will need to use recognised software to keep digital records and send light-touch quarterly updates of their income and expenses.

The tax authority says these are not extra tax returns.

Free software options are available and once income and expenses are recorded, the software generates a simple summary to send to HMRC.

HMRC says that at the end of a tax year, those within MTD for Income Tax will still need to file a tax return by the following 31 January. However, the software will already hold the information from the quarterly updates, meaning no last-minute hunt for records or receipts.

Craig Ogilvie, HMRC's Director of Making Tax Digital, said:

‘With two months to go until MTD for Income Tax launches, now is the time to act. A range of software is available and the system is straightforward and helps reduce errors. Thousands of volunteers have already used it successfully.

‘This will make it easier for sole traders and landlords to stay on top of their tax affairs and help ensure everyone pays the right amount of tax.

‘Spreading your tax admin throughout the year means avoiding that last minute scramble to complete a tax return every January. 

The LITRG has published new guidance to help taxpayers navigate the change.

Victoria Todd, Head of LITRG, said:

‘MTD is the biggest tax change since self assessment and with just over two months to go, time is running out to get ready.

‘Many taxpayers will have the support of a tax adviser or accountant to guide them through the process. But for those who can’t afford professional tax advice, the new rules may seem confusing and the requirements daunting.

‘We want to make it as easy as possible for taxpayers to understand whether the rules apply to them and what they need to do if that is the case.’

Internet link: LITRG website