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.
More than 1,200 car derivatives are currently identified as Alternative Fuel Vehicles (AFVs) and are eligible for tax breaks, according to Cap HPI.
Legislation defining the tax treatment of when a vehicle is a van or a company car has been labelled outdated, unclear and not fit for purposes by tax experts.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.
The Government is being urged to overhaul motoring taxation and replace it with road pricing as part of its plans for a ‘green’ recovery.
By Paul Hollick, chair of the Association of Fleet Professionals (AFP)
Video introduction from Fleet News editor-in-chief Stephen Briers
The Chancellor's summer economic plan introduced a range of measures to help the UK economy recover from the impact of the coronavirus.
By Harvey Perkins, employment tax specialist at Gunnercooke Consulting
Firm found guilty under health and safety legislation but, despite the deaths of two employees in a works van, no corporate manslaughter charge brought.
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.
The June digital edition of Fleet News is now available to read, packed with useful and insightful content for fleet decision-makers, fleet influencers and suppliers and manufacturers.
Fleet industry and tax advisers believe new HMRC guidance falls short of the mark.
The coronavirus job retention scheme has been extended until the end of October, but employers will have to share some of the costs from August.
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.
The Government has changed the guidance it issues to employers on salary sacrifice arrangements to allow for the impact of COVID-19.
The Fleet News car running cost tools have been updated to reflect the switchover to WLTP CO2 emissions data and the new 2020/21 benefit-in-kind (BIK) bands.
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