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Do you know how the Government’s Autumn Statement will impact your fleet decisions?
22 November 2022
We understand that you might well be asking if last week's Autumn Statement has created more questions than answers about how you will run your fleet going forward.
What we do know is that the Chancellor, Jeremy Hunt, has just confirmed that the UK is officially in recession.
The Government has announced in the Autumn Statement that benefit-in-kind (BIK) tax for electric vehicles (EVs) will continue to be kept low to increase uptake.
The Chancellor said he had listened to the fleet industry and will increase company car tax for EVs by 1% year-on-year for three years from 2025. Currently, BIK for a pure EV is 2% (2022/23) and will remain at that rate up until April 2025. The Chancellor’s announcement means that it will increase to 3% in 2025/26, to 4% in 2026/27, and 5% in 2027/28.
Jeremy Hunt also announced that EVs will be subject to vehicle excise duty (VED) for the first time from 2025.
In further news for EV company car drivers, HMRC has announced an increase in the Advisory Electricity Rate (AER) from 5ppm to 8ppm as of 1st December 2022.
There are also calls for the chancellor to commit to a further freeze of fuel duty after a forecast from the Office for Budget Responsibility (OBR) said 12p a litre would be added to pump prices if the Government did not act.
Fuel duty was not mentioned by Chancellor Jeremy Hunt in his Autumn Statement, but the fiscal watchdog's document says it assumes there will be an increase in the Spring of 2023.
What’s certain is we live in a time where ‘every little helps’. Most businesses are experiencing financial pressures, and this is a perfect time to look at your overall fleet costs and see how you can make savings going forward for the benefit of your organisation.
We consistently provide savings to clients in terms of cost, such as mileage management. We also save our clients valuable time and resource.
If you would like some clarity about the future of fleets, please contact us today for a ‘no strings attached’ discussion about your future fleet strategy.
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