Company Car Tax: Update On 9th July, the Government published the company car Benefit-in-Kind (BiK) tax rates that will apply from April 2020 through to April 2023, providing long-awaited clarity for both drivers and decision-makers. The most obvious change brought about by this announcement is that, from April 2020, company cars producing no emissions will not attract any BiK tax liability. The zero percent BiK rate will also apply to cars producing 1-50g/km [...]
Are Your Tools Safe? Making sure you have the right level of insurance cover is important, and it is easy to make assumptions which mean things are overlooked. One such assumption is that your van insurance that covers your business van or fleet also covers you for tools, equipment and stock that is in the vehicle. Unfortunately, this is not the case, and if you do not have insurance in place to properly [...]
Contract Hire for Business – What are the Tax Implications? Leasing company cars and vans, rather than buying them outright, is now well established for businesses. It provides known, easily budgeted costs with no hidden surprises and predictable cash-flows. The most popular type of vehicle leasing for businesses is contract hire. It's a form of operational leasing which allows the end user or lessee to hire a car for a set period of time and [...]
Thinking Of Ending Your Company Car Scheme? Announcements in the 2017 Government Autumn budget of tax increases on company vehicles have prompted many businesses to consider giving their employees cash allowances in place of running company car schemes. On the face of it, this would seem to be a cost-effective solution for the company, but comes with often-overlooked ramifications which impact on employees and company alike. Some of these consequences appear to be relatively [...]
Employee car schemes at a crossroads, says new survey Some 70% of respondents would opt out if tax levels rise still further Tax and cost more important than the environment 78% less likely to choose a low emission vehicle if incentives removed While employees still view employer-provided car schemes as a benefit, growing numbers would consider opting out of such schemes if car tax increases still further. At the same time, tax and [...]
Business Car Leasing Explained Buying vehicles for business purposes inevitably means handing over a large lump sum and is accepted by most businesses as a necessary expenditure, but this doesn’t have to be the case. The option of business vehicle leasing is becoming increasingly popular in the UK, allowing companies to offer business vehicles to their employees, but with a smaller capital outlay, and as a result, a much healthier cash flow. So what [...]
A much sign-posted freeze in fuel duty, an extension of the 2% increase in company car tax, a £200 million fund to repair the UK’s roads and a rise in VED in line with inflation. These were some of the headlines of interest for fleet operators announced by Chancellor George Osborne in his fifth Budget speech and possibly the last before the next General Election. In the Budget, which was, said Mr Osborne, for [...]
Which fleet maintenance methods are most cost effective? Most contract hire packages today come with a maintenance-inclusive element, but many companies that use contract hire to fund their company cars this way don’t realise that there may well be a more cost-effective alternative. Maintenance-inclusive contract hire packages are widespread and undoubtedly profitable for contract hirers, some of whom are prepared to share these profits with fleet clients, while others are reluctant to do so. [...]
Chancellor's Autumn Statement announces changes to fuel duty and tax discs The Chancellor has abolished the tax disc and frozen fuel duty for the remainder of the Parliament in his Autumn Statement, in a series of announcements that will benefit fleet operators. The introduction of an online system, in place of the current paper tax disc, will benefit fleets, resulting in an estimated £10m cost saving per annum. It will also speed up leasing [...]
