Legislation - Page 10

Plans to introduce a workplace parking levy in Leicester should be scrapped while businesses struggle with the impact of Covid-19, says city councillor.

The Government has admitted in a new report that tax revenues are at significant risk from the switch to electric vehicles (EVs).

Harvey Perkins, director at HRUX, looks at the latest HMRC statistics and asks how Government can sent tax policies when it doesn't have all the data.

The amount of tax collected from company car drivers and their employers by HMRC in the 2018/19 tax year has increased by £170 million (7.5%) to £2.46 billion.

Car fuel benefits are often costly from a tax perspective, because the taxable benefit is fixed and takes no account of the actual private use in the year.

IAM RoadSmart is calling for clearer guidelines on the use of police technology to encourage use of mobile safety cameras and dash cams in prosecuting motorists using handheld mobile phones and not wearing seatbelts.

More than 1,200 car derivatives are currently identified as Alternative Fuel Vehicles (AFVs) and are eligible for tax breaks, according to Cap HPI.

The case involved the use of three vehicles – two Volkswagen Kombis and a Vauxhall Vivaro – and whether they should be treated as cars or vans for tax purposes.

Legislation defining the tax treatment of when a vehicle is a van or a company car has been labelled outdated, unclear and not fit for purposes by tax experts.

HMRC’s decision to allow company car drivers to hand keys back was another ‘knee jerk’ reaction and not practical for fleets, say Fleet200 members.

The Government is being urged to overhaul motoring taxation and replace it with road pricing as part of its plans for a ‘green’ recovery.

By Paul Hollick, chair of the Association of Fleet Professionals (AFP)

Video introduction from Fleet News editor-in-chief Stephen Briers

The Chancellor's summer economic plan introduced a range of measures to help the UK economy recover from the impact of the coronavirus.

By Harvey Perkins, employment tax specialist at Gunnercooke Consulting

Firm found guilty under health and safety legislation but, despite the deaths of two employees in a works van, no corporate manslaughter charge brought.

Company car drivers, who have their fuel paid for by their employer, could be in line for a tax refund, according to RSM Employer Solutions.

The June digital edition of Fleet News is now available to read, packed with useful and insightful content for fleet decision-makers, fleet influencers and suppliers and manufacturers.

Fleet industry and tax advisers believe new HMRC guidance falls short of the mark.

The coronavirus job retention scheme has been extended until the end of October, but employers will have to share some of the costs from August.

HMRC has issued official guidance to fleets on how to treat benefit-in-kind (BIK) tax and expenses during the Covid-19 pandemic.

Almost three-quarters (72.6%) of respondents to a Fleet News survey say less than 10% of their company cars are being driven for work.

The Government has changed the guidance it issues to employers on salary sacrifice arrangements to allow for the impact of COVID-19.

The Fleet News car running cost tools have been updated to reflect the switchover to WLTP CO2 emissions data and the new 2020/21 benefit-in-kind (BIK) bands.

The process for updating new endorsements and points on a licence also remains unaffected, says the DVLA.

Fleets waiting for the Government to rubber-stamp new company car rates may have to wait a little longer with the date of the Budget now in doubt.

Changes to Government company car tax tables, published on its website, suggest tax officials are preparing for new rates to finally be adopted.

The Government has announced that the Chancellor, Sajid Javid, has chosen March 11 as the date for his first Budget.

The Institute for Fiscal Studies (IFS) says the Government should consider road pricing and overhaul the company car tax regime.

It proposes to remove the £320 Vehicle Excise Duty (VED) surcharge on EVs purchased for private fleet use above £40,000 for two years.

By Andy Eastlake, managing director, Low Carbon Vehicle Partnership

The fuels and lubricants supplier says UK should mirror Sweden’s approach to switch from fossil fuels to biofuels to help meet the UK's net-zero carbon target.

Avoid temptation to repurpose car-derived vans into more car-like vehicles for Benefit-in-Kind (BIK) and vehicle tax savings.

Tax revenues rise £70m year-on-year despite figures being based on 50,000 fewer company cars.

By Matthew Walters, head of consultancy and customer data services at LeasePlan UK

New benefit-in-kind rates for company cars suggest drivers could be hundreds of pounds better off by registering a replacement vehicle prior to April 6, 2020.

By Erik Fairbairn, Pod Point CEO and founder

Changes to the company car tax regime, which will see fully electric cars not subject to any benefit-in-kind tax in 2020-2021, have received a mixed reaction from fleet managers.

Trade organisations have criticised aspects of the Government’s new benefit-in-kind tax regime, with ACFO describing it as “a token gesture” for the vast majority of company car drivers.

The Government says that company car drivers choosing a pure electric vehicle will pay no benefit-in-kind (BIK) tax in 2020/21.