Tax revenues rise £70m year-on-year despite figures being based on 50,000 fewer company cars.
By Matthew Walters, head of consultancy and customer data services at LeasePlan UK
New benefit-in-kind rates for company cars suggest drivers could be hundreds of pounds better off by registering a replacement vehicle prior to April 6, 2020.
By Erik Fairbairn, Pod Point CEO and founder
Changes to the company car tax regime, which will see fully electric cars not subject to any benefit-in-kind tax in 2020-2021, have received a mixed reaction from fleet managers.
Trade organisations have criticised aspects of the Government’s new benefit-in-kind tax regime, with ACFO describing it as “a token gesture” for the vast majority of company car drivers.
The Government says that company car drivers choosing a pure electric vehicle will pay no benefit-in-kind (BIK) tax in 2020/21.
The Licence Bureau is warning fleet operators and drivers to ensure they understand the law relating to towing loads.
But tax office says new pay reporting option could have skewed figures, with fall much less than suggested.
Lifestyle 4x4 vehicles are an increasingly popular tax efficient choice for company car drivers, claims Cap HPI.
Employees in increasing numbers are opting to take cash in lieu of a company car amid year-on-year rises in company car tax, risking the Government’s green agenda.
By Alastair Kendrick specialist employment tax adviser
ACFO is urging the Government to adopt a six-point action plan to protect and enhance company car demand.
By Dan Rees, associate director, head of cars and fleet consulting at Deloitte
Lex Autolease believes the number of company car taxpayers could drop from 940,000 to 832,000 by April 2020 as a result of OpRA tax changes and WLTP.
Tusker, one of the country’s leading providers of cars via salary sacrifice maintains it remains a “unique and valuable” benefit for employees.
The Budget was a “waste of golden opportunity” to provide clarity and stability to fleet decision-makers on future company car benefit-in-kind tax rates, says ACFO.
The National Police Chiefs Council (NPCC) is playing down suggestions from its roads policing lead that drivers could be fined for breaking the speed limit by just 1mph.
Insurance, maintenance, tyres and breakdown cover could now be taxed when provided via a so-called Optional Remuneration Arrangements (OpRA).
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