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.’

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