Autumn Budget 2026: what it means for drivers
Every change for drivers announced in the Autumn Budget 2026 on 28 October 2026, and the changes that were already on the way. Our calculators use the new rates.
What the Budget announced
1 November 2026 · Public EV charging
New law makes clear that electricity from public and workplace charge points is charged the standard 20% VAT, unlike home electricity.
Source: HM Treasury, Budget 2026
Now until 1 July 2027 · Home electricity
VAT on household electricity stays at 0% instead of 5% until 1 July 2027, which also makes charging an electric car at home a little cheaper.
Source: HM Treasury, Budget 2026 · EV charging cost calculator
Until 1 July 2027 · Fuel duty
The 5p-a-litre fuel duty cut was due to start being reversed from January 2027. It now stays until 1 July 2027, and the planned inflation rise is put off until then too.
Source: HM Treasury, Budget 2026 · Fuel cost calculator
Spring 2027 · Public EV charging
£100 million over two years to cut the cost of local, lower-powered public chargers. The government expects it to save a typical driver who charges on the street around £150 a year. A taskforce will look at letting drivers use their home tariff at these chargers.
1 April 2027 · Car tax (VED)
Car, van and motorcycle tax rates rise with inflation (RPI). The new rates are published before April.
Source: HM Treasury, Budget 2026 · Car tax calculator
6 April 2027 · Mileage rates
The 55p-a-mile tax-free rate for the first 10,000 business miles in your own car or van is now permanent, and the rate above 10,000 miles rises from 25p to 35p. This applies to employees and to the self-employed using simplified expenses.
Source: HM Treasury, Budget 2026 · Mileage allowance calculator
6 April 2027 · Company cars
Employers must tax company cars, vans and fuel benefits through payroll, so the tax comes out of each pay packet instead of through your tax code. This was due in April 2026 and has been put back a year.
Source: HM Treasury, Budget 2026
April 2028 · Electric car tax
eVED, the pay-per-mile charge for electric and plug-in hybrid cars, still starts in April 2028. The government will add a tool to estimate your mileage, an opt-in 'eVED Connect' that reads the mileage from connected cars, and automatic refunds by 2030 if you overestimate.
Source: HM Treasury, Budget 2026 · EV pay-per-mile tax calculator
6 April 2030 · Company car tax
Rates for 2030/31 are set 1 point above 2029/30 across every band: electric company cars go from 9% to 10%, cars from 1 to 50g/km from 19% to 20%, and the top rate to 40%. These still have to be passed into law.
Source: HM Treasury, Budget 2026 · Company car tax calculator
Changes that were already coming
6 April 2027 · Company car tax
Electric company cars go from 4% to 5% of list price, plug-in hybrids pay 5% to 17% depending on electric range, and cars from 51 to 69g/km go up 1 point. Cars from 70g/km stay the same.
Source: Finance Act 2023, section 11 · Company car tax calculator
6 April 2027 · Making Tax Digital
Self-employed people and landlords with qualifying income over £30,000 must keep digital records and send quarterly updates to HMRC.
Source: GOV.UK Making Tax Digital for Income Tax · Self-employed vehicle expenses
1 April 2028 · Electric car tax
A new pay-per-mile charge (eVED) of 3p a mile for electric and hydrogen cars and 1.5p for plug-in hybrids, paid alongside normal car tax. The law to bring it in is still to be passed.
Source: GOV.UK Electric Vehicle Excise Duty · EV pay-per-mile tax calculator
6 April 2028 · Company car tax
Electric company cars go to 7%, every car from 1 to 50g/km pays 18% whatever its electric range, every other band rises 1 point and the top rate goes to 38%.
Source: Finance Act 2025, section 5 · Company car tax calculator
6 April 2028 · Making Tax Digital
Making Tax Digital for Income Tax extends to qualifying income over £20,000.
Source: GOV.UK Making Tax Digital for Income Tax · Self-employed vehicle expenses
6 April 2029 · Company car tax
Electric company cars go to 9%, cars from 1 to 50g/km to 19%, and the top rate to 39%.
Source: Finance Act 2025, section 6 · Company car tax calculator
April 2029 · Electric car tax
The eVED pence-per-mile rates start rising with inflation (CPI) each year.
Source: GOV.UK Electric Vehicle Excise Duty · EV pay-per-mile tax calculator
Rates for 2026/27, checked against the official sources on : HM Treasury, Budget 2026, HMRC company car appropriate percentages, GOV.UK Electric Vehicle Excise Duty and GOV.UK Making Tax Digital for Income Tax. Tax rules can change at a Budget; we update these tools when they do.
Frequently asked questions
›Is car tax going up?
Yes, with inflation. Budget 2026 confirmed car, van and motorcycle tax rates rise in line with RPI from 1 April 2027. The exact new rates are published before April, and our car tax calculator will switch to them then.
›What did the Budget do to fuel duty?
It kept the 5p-a-litre cut, which was due to start being reversed in January 2027, until 1 July 2027, and put off the planned inflation rise until then too. So pump prices won't rise because of duty before July 2027.
›What is the mileage allowance rate now?
55p a mile tax-free for the first 10,000 business miles in your own car or van, now made permanent. From 6 April 2027 the rate above 10,000 miles rises from 25p to 35p.
›When does pay-per-mile tax for electric cars start?
1 April 2028, at 3p a mile for electric cars and 1.5p for plug-in hybrids, paid alongside normal car tax. The law to bring it in is still to be passed.
›Will company car tax on electric cars go up?
Yes. It's already set in law: from 4% of the list price in 2026/27 to 5% in 2027/28, 7% in 2028/29 and 9% in 2029/30. Budget 2026 announced 10% for 2030/31, which still has to be passed into law.