As we started this week we were aware of the tax liabilities for our fleets for a number of years and all thinking that both the BIK and NIC changes for those that pick diesel as a preferred vehicle given the MPG, low Co2 the improvement from April 2016 when the 3% surcharge was supposed to be scrapped would have been welcomed by the employee and the employer. Well now that the 3% surcharge is here to stay we have to start to understand our fleet policies, do you offer a diesel only policy and if so is there alternative vehicles that are available to you that still provide the MPG and low Co2 incentives? What a lot of companies forget is although they have to pay the monthly rental they also have to pay the NIC charge against the Benefit in kind tax charge that the employee has to make. So having a policy that helps reduce the overall cost of the vehicle is something everyone needs to consider including all those hidden costs.
There are some really good alternative options out there in the market place and it is just about taking the time out to identify what they are. As we have seen an increase in personal contract purchase deals it would lead you to believe that people are looking at their costs and taking the cash alternative and making their own arrangement for a company car which given the increase in pressure on the taxation costs would be a confident assumption to make but what does make us all look up is the increase within this market of over 40%.
This means that companies need to ensure they have the grey fleet policy nailed down and supports all your employees and ensuring that they as well as the company are safe while out on company business.
Here at PVS we are available to support you and your employees with all your fleet requirements and would be delighted to hear from you even if it is to have a chat through any concerns.
Call Marcus on 07801472247