Jeremy Hunts Latest Announcements
Jeremy Hunt today announced a wide range of changes to various sectors in his Autumn Statement, these includes a few changes for Vehicle Excise Duty (VED) on Electric Vehicles, Company Car Tax and an increase in HMRC’s advisory electricity rate to 8 pence per mile.
EV’s to pay Vehicle Excise Duty
Electric Vehicles (EV’s) will no longer be exempt from Vehicle Excise Duty from April 2025, this is in a bid to make the UK’s motoring tax system ‘fairer’.
No exact details have been released as yet, but watch this space for more details.
Company Car Tax changes for EV drivers
Company car tax will increase by one percentage point each year from 2025 this will make the rates as follows:
The current rates for EV company car drivers is just 2%.
HMRC increases advisory electricity rate to 8 pence per mile
No really part of the Autumn Statement, but we included it as the majority of the announcements have effected EV drivers. HMRS aanounced that their advisory rate for Electric Car Mileage reimbursements would increase from 5 pence per mile to 8 pence per mile.
The rate will also be reviewed quarterly in line with advisory fuel rates (AFR’s).
Additional Rate Tax Threshold Reduced
From April 2023, those who earn £125,140 will be charged income tax at 45%. This threshold has been reduced from £150,000.
It is also important to remember that you do not get a personal allowance on taxable income over £125,140. More details can be found on the Gov.uk Website.
More News To Follow
If we hear of any further news regarding the Autumn Budget and the changes, we will update this article. Please bookmark it for any future changes.