UK Industry Group Calls for Company Car Tax Clarification in 2014 Budget
UK-headquartered the Association of Car Fleet Operators (ACFO) has called for clarification of long-term company car tax rates in the country's 2014 Budget.The government has confirmed that the annual Budget will be held on March 19.
ACFO director and former chairman Julie Jenner recently met with HM Revenue and Customs’ officials in the latest of their regular meetings and lodged the organization’s Budget “wish list.”
“Officials listened to what we had to say and took on board the importance for fleet decision-makers of long-term planning. All too frequently the Government makes announcements which prove to be a knee-jerk reaction to an event. For fleet managers advance notification of measures is crucial so changes in fleet strategy can be accommodated while continuing to ensure that business efficiency is maintained,” said Jenner in a statement following her meeting with Budget officials.
ACFO is hoping that the Budget announcements will include:
- Company car benefit-in-kind tax rates for 2017/18 and thus returning to the four-year cycle of advance notification of thresholds as those for 2014/15, 2015/16, and 2016/17 are already known.
- Confirmation of the Government’s 2013 Autumn Statement announcement of no fuel duty increases ahead of the expected May 2015 general election.
- Clarification on Advisory Fuel Rates and Approved Mileage Allowance Payments in relation to electric vehicles.
- Encouragement for the further take-up of ultra-low emission vehicles by fleets and company car drivers through the Government’s Plug-In Car Grant scheme, by announcing that benefit-in-kind tax should be calculated according to the list price of the model minus the £5,000 grant.
- A reconsideration of the rise in benefit-in-kind tax on electric vehicles scheduled for April 2015.
“With the economy on the road to recovery and a general election looming next year we do not anticipate any Budget announcements that will significantly change the management of fleet operations. However, it is critical that fleet managers and company car drivers have the ability to calculate what their benefit-in-kind tax bills will be on at least a four-year cycle. We certainly hope that Chancellor of the Exchequer George Osborne will confirm tax rates for 2017/18 and maybe even 2018/19 with company car replacement cycles increasingly extending into a fourth and occasionally a fifth year,” Jenner added.