Fleet News

Fleet Logistics laments company car tax rises

Fleet Logistics International has said the Budget represented mixed news for fleet operators and lamented the newly announced 2% tax increase for company cars in 2017/18 and 2018/19.

Stuart Donnelly, chief regional officer for Europe North, said: “While we welcome yet another freeze in fuel duty, and the additional £200 million fund for councils to tackle the issue of the terrible state of repair of Britain’s roads, the chancellor seems to be determined to penalise drivers who qualify for company cars with 2% tax rises in three and four years time.

“That’s on top of the 2% increases already announced for 2015/16 and 2016/17."

For a vehicle with a P11D value of £25,000, that level of increase equates to an extra £200 a year in tax for a 40% tax payer, every year, says Fleet Logistics.

Donnelly continued: “For many companies, company-owned cars are vital tools of the trade not perks of the job, so further rises of this kind are punitive and disproportionate.

“We are advising our customers to plan carefully ahead in their vehicle selection with the tax increases in mind, and to consult closely with us as to the suitable choice of models for their fleet policy lists going forward. This increases the need for companies to carefully consider the whole life costs of their vehicles and not just rely on incentivized front end prices.”

Fleet Logistics currently manages a fleet of around 120,000 vehicles in more than 23 countries on behalf of leading multinational corporations.

The company was acquired by TÜV SÜD Group in 2012 and is targeting strong growth in terms of the managed fleet, product range and country scope this year.
 


Find out what the Budget announcements on BIK mean for salary sacrifice at our Fleet News salary sacrifice seminar – April 10 at Hanbury Manor, Ware, and May 13 at Cranage Hall, Cheshire. Click here for details.

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