The Government has admitted in a new report that tax revenues are at significant risk from the switch to electric vehicles (EVs).
Ministers are being urged to work with the fleet sector to ensure any changes to motoring taxation are carried out in a timely, effective and proportionate way.
Harvey Perkins, director at HRUX, looks at the latest HMRC statistics and asks how Government can sent tax policies when it doesn't have all the data.
The amount of tax collected from company car drivers and their employers by HMRC in the 2018/19 tax year has increased by £170 million (7.5%) to £2.46 billion.
Car fuel benefits are often costly from a tax perspective, because the taxable benefit is fixed and takes no account of the actual private use in the year.
The number of people paying company car tax has again fallen substantially, with HMRC reporting 30,000 fewer people receiving the benefit.
HMRC has published new advisory fuel rates (AFRs) effective from Tuesday (September 1) for company car drivers claiming fuel costs.
Legislation defining the tax treatment of when a vehicle is a van or a company car has been labelled outdated, unclear and not fit for purposes by tax experts.
HMRC’s decision to allow company car drivers to hand keys back was another ‘knee jerk’ reaction and not practical for fleets, say Fleet200 members.
Company car drivers, who have their fuel paid for by their employer, could be in line for a tax refund, according to RSM Employer Solutions.
Vehicle Excise Duty (VED) should be increased on the most polluting cars to encourage the switch to cleaner fuels, says Committee on Climate Change.
Fleet industry and tax advisers believe new HMRC guidance falls short of the mark.
HMRC has reduced the advisory fuel rates (AFR) for all engine sizes and fuel type, effective from June 1.
HMRC has issued official guidance to fleets on how to treat benefit-in-kind (BIK) tax and expenses during the Covid-19 pandemic.
Almost three-quarters (72.6%) of respondents to a Fleet News survey say less than 10% of their company cars are being driven for work.
HMRC says it will publish official company car tax guidance to reflect clarification given to Fleet News in light of the coronavirus lockdown.
Licence Check is offering advice to fleet decision-makers regarding licence checking services whilst the coronavirus outbreak forces many businesses into lockdown and remote-working.
Tax experts at MHA MacIntyre Hudson have welcomed HMRC’s clarification on benefit-in-kind (BIK) tax rules as fleets come to terms with life under lockdown.
Changes to Government company car tax tables, published on its website, suggest tax officials are preparing for new rates to finally be adopted.
Required legislation on hold, with new BIK rates, including the 0% rate for electric company cars, needing approval of new Government before they can be used.
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