Fleet News

Correction: BIK tax bombshell

In this week’s issue of Fleet News, the p1 news story and the editor’s comment both contain inaccurate calculations.

While it’s true that the changes the Government is planning to make to the 40% tax threshold in April will have an impact on the benefit in kind paid by company car drivers close to that threshold, the figures quoted by Fleet News have been overstated.

BIK payments will not double, although in some cases it may increase by £200 or more per year. Some of that increase may be mitigated by the raising of the lower, starting tax threshold, however.

Fleet News will publish a follow up story in the February 17 issue with further examples of the impact on the estimated 110,000 company car drivers affected by the lowering of the 40% tax threshold.

Stephen Briers
Editor, Fleet News

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