Volvo Car UK has welcomed the extension of more favourable Benefit in Kind (BIK) bandings for company car drivers and fleet operators who opt for lower CO2-emitting hybrid vehicles.
The announcement, which sees 0-50g/km CO2 vehicles in a BIK banding of 5% from 2015/16 and 7% in 2016/17 as part of the additional two new company car tiers (from 0-50g/km and 51-75g/km), is good news, says national corporate operations manager Selwyn Cooper (pictured).
Cooper said: “We are delighted to see the government will continue to award drivers and fleets who opt for cleaner vehicles incentivised through a lower BIK banding.
“Maintaining the rate at 5% for these vehicles in 2015/16 followed by a gradual increase to 7% the following tax year will continue to incentivise business users to choose such vehicles.
“The announcement reflects the spirit of the original CO2 company car taxation policy which delivered tax advantages to company car drivers and employers choosing vehicles which emit lower CO2.
“As well as encouraging take up of these vehicles, we think it also delivers deserved recognition of manufacturers who have invested millions in developing a range of low CO2 emitting vehicles.”
First deliveries of the newly launched 48g/km Volvo V60 Plug-in Hybrid, the world’s first diesel plug-in hybrid, in the UK take place this summer.
VCUK, however, remains concerned about the exclusion of lease vehicles from the 100% first year write down.
Cooper said: “Excluding vehicles which are leased from the 100% first year WDA is short-sighted and counter-productive in our view.
“It simply limits funding options for companies who are always looking to reduce costs in a challenging economic environment.”