Fleet News

Firms ignore August VAT changes

MORE than 70% of fleets have not reviewed or changed their company car policies as a result of the August 1, 1995 VAT changes, according to the 1996 Lex Report on Motoring - 'Listening to the needs of Company Motorists'.

Following the move to allow leasing companies to recover VAT on the purchase of vehicles bought for business use, resulting in lower monthly rentals, there was widespread belief that fleets would move from buying vehicles outright to leasing. The report found that 36% of companies had not reviewed their purchasing policy, 35% had decided not to change and a further 6% said they would review this year.

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment


No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee