5 Autumn Budget | 26 November 2025 Ordering of income tax reliefs and allowances The income tax rules will be changed from 6 April 2027 so that reliefs and allowances deductible in income tax calculations will only be applied to property, savings and dividend income after they have been applied to other sources of income. National insurance contributions (NICs) The NIC thresholds for employees and self-employed individuals will be frozen at their current levels for a further three years from April 2028 to April 2031. The class 1 secondary threshold will also be held at its current level of £5,000 from April 2028 to April 2031. Access to pay voluntary class 2 NICs abroad will be removed from 6 April 2026. The period of initial residency or contributions required to pay any voluntary NICs outside of the UK will be increased to ten years. The government will also launch a wider review of voluntary NICs with a call for evidence in the new year. Car taxes A new mileage charge for electric and plug-in-hybrid cars (PHEV) will come into effect from April 2028. Drivers will pay for their mileage alongside their existing vehicle excise duty (VED) at rates of 3p a mile for fully electric vehicles and 1.5p a mile for plug-in hybrids. From 1 April 2026, the threshold for VED expensive car supplement for new EVs will be increased by £10,000 to £50,000.
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