Since the 6th April 2017, new legislation (see HMRC’s Employment Income Manual): OpRA - Optional Remuneration Arrangements has come in to play, placing salary sacrifice schemes on an equal footing with other perk schemes provided to employees. This briefing note aims to illustrate how these changes will affect key individuals in the fleet industry, understand the underlying reason for these changes and finally provide some clarity for what the future holds.
Prior to the 6th April 2017 company car drivers who were offered a cash
allowance yet opted for a car were taxed on the BIK (benefit in Kind) value of
the car. Since the 6th April 2017 however, company car drivers who are offered
a cash alternative yet opt for a car are taxed on the larger of the BIK value and
the cash allowance
In the Autumn Budget 2017, the government announced that it would legislate in a future Finance Bill, for the WLTP system to be introduced from April 2020.
As of the 6th April 2018 the company car tax rate for a diesel certified RDE2 will be equivalent to that of a petrol car with the same emissions band. Any diesel car not certified RDE2 (Real World Driving Emissions Stage 2) will be subject to a 4% supplement, and from September 2018 the WLTP (World Harmonised Light Vehicle Testing Procedure) approval will be mandatory for new cars.
This paper is designed to explore how the WLTP and the RDE2 supplement will affect official performance and emissions figures to try and remove the uncertainty surrounding potential legislation changes for company car drivers, fleet managers and fleet owners.
With severe winter weather forecast over the coming months, here is some information about all-weather driving which will help you stay safe on the roads during the winter months. Winter weather presents challenges in general. Here are some of our recommendations for things to look out for to keep your vehicle in tiptop condition throughout the winter season:
I have been very remiss in blogging and over the last couple of months I have had the pleasure of reviewing new vehicles and in particular the new Toyota Hi Lux. As we all know manufacturers are making much better vehicles and some niche vehicles that are being used within the fleet industry such as the Ford Ranger,
On the 22nd January this year I put out a blog about high registrations and the effect this is going to have on the market and in particular the grappling effects this has with Contract Hire companies as they try to anticipate the second hand market. After all, Lease companies are the main contributor to the second hand vehicle market.
As we know, the government are continuing with their current strategy of taxing our company car drivers with a system that uses the Co2 and list price of the vehicle. As the % increases against the Co2 and the manufacturers increase the list price the company car benefit in kind tax regime becomes more and more expensive for the driver and the company.