Fleet News

Salary sacrifice on wane as contract hire/operating lease dominate

A new emissions testing regime, economic uncertainty and a demand for greater flexibility have all impacted fleet funding and replacement cycles over the past year.

Leasing firms have faced major tax changes and doubt over how those new rules should be applied, while company car contracts have been signed without future knowledge of benefit-in-kind (BIK) rates.

New salary sacrifice rules introduced before last year’s FN50, were welcomed for their clarity and the funding method was declared ‘alive and kicking’.

Twelve months later, and reassurances received from HMRC that the finance rental of cars should be separated from other costs have gone.

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