Summary of the UK Autumn Statement 2024: Key Changes for Fleets and Vehicle Taxes
Summary of the UK Autumn Statement 2024: Key Changes for Fleets and Vehicle Taxes
The UK Autumn Statement 2024, presented by the UK's first Female Chancellor Rachel Reeves, introduced several significant changes impacting fleets and motorists. Here’s a breakdown of the key points:
1. Company Car Tax Incentives for EVs
The government has extended tax incentives for fully electric company cars beyond 2028. This move aims to encourage businesses to adopt electric vehicles (EVs) and support the transition to a greener economy.
2. Plug in Hybrid Car tax Changes
However, hybrid vehicles will face higher tax rates, reflecting the push towards fully electric options, this applies from 2028 onwards as all Plug in Hybrid Vehicles (PHEV) will be taxed at 18% irrespective of how far they can travel in Electric only mode.
3. Vehicle Excise Duty (VED) Adjustments
The Autumn Statement includes adjustments to Vehicle Excise Duty (VED).
4. Fuel Duty
In response to the ongoing cost-of-living crisis, the government has decided to freeze fuel duty for another year thus avoiding the expected 5p per litre increase.
5. Employer National Insurance Contributions (NICs)
There are changes to employer NICs for company cars, particularly those with higher emissions.
6. Phasing Out Internal Combustion Engine Vehicles
The government reaffirmed its commitment to phasing out new cars that rely solely on internal combustion engines by 2030.
Implications for Fleet Managers
Fleet managers need to stay informed about these changes to effectively manage their fleets and to ensure their fleet policies and operations can adapt to the upcoming changes.
The focus on electric vehicles and higher taxes on polluting vehicles means that transitioning to a greener fleet is not only environmentally responsible but also financially beneficial.
Conclusion
The 2024 Autumn Statement underscores the UK government’s commitment to sustainability and reducing emissions. By extending incentives for electric vehicles and adjusting taxes to favour greener options, the government is steering both businesses and individuals towards a more sustainable future and the 2030 Internal Combustion Engine car ban date.
For fleet managers and motorists, staying updated on these changes is crucial to optimize fleet operations and take full advantage of the available incentives.
Feel free to reach out if you need more detailed information or have specific questions about how these changes might affect your fleet!