NOVEMBER MONTHLY NEWSLETTER RECAP

ASESA Solutions Ltd - NOVEMBER MONTHLY NEWSLETTER RECAP

November brought important updates in electric vehicle taxation, savings interest reporting, and government support programs like new HMRC guidance to changes in mortgage assistance, here’s a quick roundup to keep you informed.

1] HMRC’S ADVISORY ELECTRIC RATES (AER) FOR COMPANY CARS

HMRC has updated the Advisory Electric Rate (AER) to reflect real EV charging costs. Effective 1 September 2025:

• 8p per mile — Home charging

• 14p per mile — Public charging (slow/fast chargers ≤50 kW)

Employers may reimburse higher amounts only if evidence supports actual costs (receipts or logs). Paymen

ts above the AER without proof are taxable via PAYE.

These changes aim to make reimbursements fairer and more aligned with real-world EV usage.

2] SIMPLE ASSESSMENT FOR SAVINGS INTEREST

From October 2025, HMRC issues Simple Assessment letters for tax on savings interest earned between April 2024–25, helping those not filing Self-Assessment.

Figures may differ due to:

• Banks report total interest; HMRC records only taxable interest.

• ISA interest is always tax-free.

• Smaller amounts may be collected via tax code (PAYE); larger amounts appear in the letter and are paid directly.

Only individuals with simple tax affairs receive these letters. Self-Assessment filers continue as usual.

3] PAYING TAX VIA SIMPLE ASSESSMENT

HMRC now uses Simple Assessment more widely to collect tax automatically on savings interest, replacing the need for many taxpayers to file a Self-Assessment.

Key points for clients:

• Letters show total tax due, including previously reported amounts.

• Smaller amounts may be collected through PAYE; larger amounts must be paid directly by the deadline.

• HMRC may issue a second letter if additional interest information is received later.

• Always check the letter carefully and contact HMRC within 60 days if any figures appear incorrect.

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4] SUPPORT FOR MORTGAGE INTEREST (SMI)

SMI is a government loan to help homeowners receiving certain benefits cover mortgage interest.

• Not a grant — normally repaid when selling or transferring the home.

• Paid directly to lenders, reducing monthly costs.

• Eligible recipients include those on Universal Credit or Pension Credit.

• Optional early repayments or stopping SMI are allowed.

SMI provides temporary financial support while protecting homeownership.