Tax reforms also impact employers. Class 1A National Insurance Contributions are a flat 13.8% of the taxable value, while EVs will qualify for the standard rate of vehicle excise duty from April 2025, including the five-year levy for models costing over £40,000. Those rates are currently £165 and £335 respectively, but likely to increase in the meantime.
Most have welcomed the announcement. David Bushnell, director of consultancy and strategy at Fleet Operations, said: “[The] Autumn Statement has given fleet businesses and drivers clarity, along with breathing space, to plan ahead and factor tax rises for EVs into their financial forecasts and budgeting from 2025.”
The reforms also affect charging costs, including an extension of the first-year allowance for installing workplace charge points extended to April 2025 – a £60 million cost to the Treasury, aimed at encouraging businesses to invest. Announced separately, the Advisory Electric Rate for reimbursing EV drivers will be raised from 5p to 8p per mile from 1 December, following lobbying from the British Vehicle Rental and Leasing Association and Association of Fleet Professionals .
However, financial support for home energy bills will be wound back from April 2023, raising an average household’s annual bill from £2500 to £3000. Unit price caps for electricity have not been published yet, but this will make charging at home more expensive for some drivers.