However, Kendrick believes the BVRLA faces an uphill task. He said: “It will be difficult to obtain approval for a switch to 60% given the pressure from the EC. My fear has always been that the 50% block would be closed and then the VAT reclaim would need to be calculated by individual employers.”

Nevertheless, the BVRLA is convinced that, armed with its new data, it has a strong case and one which could give fleets a much-needed tax break. Lewis concluded: “The bottom line is that the sums at stake are just too large to ignore.”

Healthy outlook for company cars

Only one in 10 rental and leasing companies expect their fleet numbers to fall next year, while more than half (56%) are predicting an upturn in business.

The survey of rental and leasing executives at the BVRLA’s recent conference suggests a returning confidence in the sector.

This year’s FN50 survey revealed the overall risk fleet size of the top 50 leasing companies had fallen by 0.3% or 3,655 vehicles. In 2011, the risk fleet fell by 4.4% or 56,792 vehicles.

But, with more than half of respondents reporting that the number of vehicles on fleet would grow in 2013 and the remaining 34% saying they would stay the same size, the sector now looks set for growth.

Delegates were asked if new benefit-in-kind thresholds would threaten the popularity of company cars: 65% said no. However, 58% of them admitted that not being able to claim 100% first-year allowances for ultra-low emission vehicles could challenge the ‘lease versus purchase’ model for a short period.