Fleet News

Euro IV change ignored

LESS than a third of fleets have brought forward their company car replacement cycles so drivers beat the increase in benefit-in-kind tax on new Euro IV diesel cars.

Under current rules, vehicles that meet the emissions standard escape a 3% scale charge levy.

But this will change from January 1, when the waiver ends, meaning drivers will see their tax bills rise from April 6, 2006.

A survey carried out by ALD Automotive on 200 customers found that only 32% of companies have brought forward company car diesel orders.

Deputy managing director Nigel Fletcher said: ‘Some companies clearly have the flexibility within their vehicle replacement policies to bring forward diesel car orders to help their employees escape the tax rise.’

But he added: ‘The imminent increase in benefit-in-kind tax on Euro IV diesel-engined company cars provides fleets with the ideal opportunity to reassess their ongoing commitment to diesel vehicles.

‘The tax rise impacting on diesel models will clearly improve the relative benefit-in-kind position of petrol-engined models. Therefore, fleet operators and company car drivers should recalculate the tax burden before making a decision.’

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