The electric van discount continues, parents are reminded to renew child benefit payments and HMRC interest rates are set to fall
Good news from the government as they announce the continuation of the electric van and truck discounts, parents of teenagers are reminded they need to inform HMRC of their child’s education plans if they wish to continue receiving payments and HMRC are set to lower their interest rates as the base rate falls.
Electric Van and Truck Discounts Extended
The government has confirmed that the plug-in van and truck grant will continue through to at least 2027.
The grant provides valuable financial support to businesses looking to buy electric vans and trucks. Currently, discounts are available of up to £2,500 for small vans, £5,000 for large vans, £16,000 for small trucks, and £25,000 for large trucks. The grant amounts for the 2026 to 2027 financial year will be confirmed at a future date.
Industry figures suggest that businesses could save more than £2,800 annually on fuel alone by switching to electric. While balancing this against the higher purchase cost of electric vehicles, the grant may make it worth considering making a change.
Future of Roads Minister Lillian Greenwood said that the grant’s extension will help “Britain’s transition to cleaner transport while backing the industries that keep our economy moving.”
See: https://www.gov.uk/government/news/government-discounts-for-electric-vans-and-trucks-extended
CMA Seeks Views on Price Transparency Rules
The Competition and Markets Authority (CMA) is consulting on draft guidance to help businesses comply with the price transparency provisions of the Digital Markets, Competition and Consumers Act 2024 (DMCC Act).
The guidance focuses on how businesses should present pricing, including:
- What pricing information needs to be included in an invitation to purchase.
- Avoiding practices such as “drip” or “partitioned” pricing.
- What traders need to do to make sure they are complying with the new requirements.
- Understanding how the rules apply to different charges and pricing methods.
The draft guidance also illustrates how the new price transparency provisions may work in practice. It has been designed with the intention of helping traders to comply with the requirements.
The draft guidance and details about how to take part in the consultation are available on the CMA’s website.
Whether or not you want to take part in the consultation, now is a good time to review the draft guidance, considering how your business presents pricing and whether any adjustments are likely to be needed.
Don’t Miss Out: Renew Child Benefit Before 31 August
As teenagers received their exam results this week and last, HM Revenue and Customs (HMRC) were reminding parents to extend their Child Benefit claims by 31 August to ensure payments continue in September. Renewing your claim is quick, easy, and can be done online or via the HMRC app.
Who is eligible?
Families with teenagers continuing in full-time education or approved training can apply for the ongoing Child Benefit support.
Child Benefit provides £26.05 per week (£1,354.60 a year) for your eldest or only child, and £17.25 per week (£897 a year) for each additional child.
How to renew your claim
- Online or via the HMRC app is the fastest option.
- If you have already received a reminder letter from HMRC, you can also scan the QR code in the letter to go straight to the renewal service.
- Renewal is required by 31 August; otherwise payments will stop automatically.
Parents can also restart Child Benefit payments quickly if they previously opted out. From 1 September, eligibility extends to 16 to 19-year-olds who are home-educated or unable to attend college due to illness or disability.
For business owners with employees who are parents, it may be useful to share this reminder. Ensuring staff are aware of deadlines and easy online options helps them avoid interruptions in payments and reduces financial stress on them.
High-income households and the Child Benefit tax charge
Families where either parent earns between £60,000 and £80,000 may be affected by the High-Income Child Benefit Charge. HMRC provides an online tax calculator to estimate how much benefit will be received and the potential charge. Soon, eligible employed parents will have the option to pay the charge directly through their PAYE tax code, reducing paperwork.
If you need any help with your Child Benefit claim, please give us a call. We would be happy to help you!
HMRC Interest Rates to Fall Following Base Rate Cut
The Bank of England reduced its base rate from 4.25% to 4.00% on 7 August 2025. Because HM Revenue and Customs (HMRC) interest rates are directly linked to the base rate, the interest charged on late tax payments and the interest paid on repayments will also fall.
When the changes take effect
- 18 August 2025 for quarterly instalment payments.
- 27 August 2025 for non-quarterly instalment payments.
How the rates are set
Late payment interest is set at the Bank of England base rate + 4.0%. So, this will decrease to 8.0%.
Repayment interest is based on the Bank of England base rate – 1.0%, with a minimum floor of 0.5% So, the interest payable on tax repayments will reduce to 3.0%.
See: https://www.gov.uk/government/news/hmrc-interest-rates-update