UK Autumn Budget Date Set & HMRC Issues New Fuel Advisory Rates
The Autumn Budget, scheduled for 26 November, is a significant event that will shape future tax planning and influence investment incentives, corporate tax strategy, and personal tax exposure for directors. This is a key aspect to consider in the wake of the Autumn Budget.
Chancellor Rachel Reeves will deliver her first Autumn Budget on 26 November 2025. On the same day, the Office for Budget Responsibility (OBR) will publish its latest forecasts for the UK economy and public finances.
The Budget remains the government’s primary instrument for:
- We are responsible for setting tax policy (personal and corporate).
- We are confirming spending allocations for health, education, policing, and broader public services.
- This statement indicates the fiscal stance on debt, borrowing, and investment.
The Chancellor’s early remarks suggest a focus on “fixing the foundations” of the economy, striking a balance between tight control over public spending and investment in growth and productivity. Cost-of-living pressures and inflation management are likely to remain central.
For businesses, the Budget will serve as a pivotal point for future tax planning. It will particularly influence investment incentives, corporate tax strategy, and personal tax exposure for directors. This is a key aspect to consider in the wake of the Autumn Budget.
HMRC Splits Advisory Fuel Rates for Electric Cars
From 1 September 2025, HMRC has introduced a two-tier advisory electricity rate (AER) for fully electric company cars. This marks the first time HMRC has recognised the material cost difference between home charging and public charging.
- Home charging: 8p per mile
- Public charging: 14p per mile
This replaces the previous universal rate of 7p per mile.
The distinction is based on:
- Domestic charging costs are published annually by the Department for Energy Security and Net Zero.
- Public charging costs (for chargers under 50kW) based on Zapmap’s monthly index.
Key point for employers:
For employers, it’s important to note that if the actual electricity cost per mile exceeds the advisory rate, a higher reimbursement can be applied, provided the price is evidenced. This is particularly relevant for fleets relying on rapid or premium-priced charging infrastructure.
HMRC has introduced updated advisory fuel rates for company cars, effective from 1 September 2025. These rates apply to company car users in two scenarios: when employers reimburse employees for business travel expenses, or when employees reimburse private mileage costs.
HMRC has also published the quarterly advisory fuel rates, effective 1 September 2025. These apply to company car users where:
- Employers reimburse employees for business travel, or
- Employees repay private mileage costs.
Petrol
- Up to 1400cc: 12p
- 1401–2000cc: 14p
- Over 2000cc: 22p
Diesel
- Up to 1600cc: 12p
- 1601–2000cc: 13p
- Over 2000cc: 18p
LPG
- Up to 1400cc: 11p
- 1401–2000cc: 13p
- Over 2000cc: 21p
Electricity
- Home charger: 8p
- Public charger: 14p
Employers may use the previous rates for up to one month from the effective date of the new rates.
What This Means for Employers and Finance Leaders
- Payroll and reimbursement policies must be updated immediately to align with the new HMRC guidance. This proactive approach will ensure compliance and smooth operations.
- For businesses with electric fleets, the split advisory rate requires careful record-keeping on where vehicles are charged.
- Finance directors should model the cost impact of public charging rates, particularly for field-based teams with limited access to home charging.
- The November Budget may introduce further changes to corporate and employment tax policy. Directors need to review forecasts and scenario plans now so that they can be prepared for any potential alterations.
Valentis Insights
At Valentis, we work with directors and finance leaders to ensure their company car, fleet, and employee expense policies are both compliant and cost-efficient. With advisory rates now shifting more dynamically, maintaining accuracy is essential not only to avoid HMRC scrutiny but also to protect margins.
If you’d like to review your company car or CIS compliance policies ahead of the Autumn Budget, our team can help you evaluate the financial impact with precision and accuracy.