Electric Vehicles: New Advisory Rate for Public Charging
If your organisation provides electric company cars, HMRC has introduced a new Advisory Electric Rate (AER) for vehicles charged at public points (under 50kW). You can now:
Use a higher rate if public charging costs exceed the AER.
Apportion mileage between home and public charging on a just and reasonable basis.
This supports fair reimbursement and encourages the use of clean transport infrastructure.
Payroll Matters: Student Loan Plan 5: Coming April 2026
A new Plan 5 student loan type launches next year. Key points:
Repayments begin 6 April 2026 via PAYE.
Threshold: £25,000, with 9% deductions above that.
Applies to students who started courses from August 2023.
Employers will receive start notices from March 2026. Our payroll systems are being updated accordingly. For general information about Student Loans see this Gov.uk webpage.
Self Assessment Capital Gains Tax: Manual Adjustments Required
If you disposed of assets after 30 October 2024, the Self Assessment system won’t automatically apply the new CGT rates. If we prepare your tax return there won’t be a problem as our system will make this adjustment.
Self employed and landlords – Making Tax Digital (MTD): Prepare Now
From April 2026, many clients will be required to use MTD for Income Tax. HMRC is sending awareness letters from November 2025. You should see our factsheet here.
VAT Error Corrections: New Online Form
HMRC has retired the paper VAT652 form. We must now use the enhanced online form, which streamlines error reporting and supports faster resolution.
Simple Assessment Letters: Interest Income
Clients may receive second Simple Assessment letters if HMRC receives late data on bank interest. These letters show total tax owed, including amounts already paid. Be sure to contact us if you receive this, or any other letter from HMRC.
