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Budget 2016: ACFO offers comment

 

Company car tax

“ACFO is disappointed that the Chancellor has not published company car benefit-in-kind tax rates for 2020/21.

“In recent years, the Chancellor has enabled fleet operators and company car drivers to forward plan by providing tax rates five years in advance of implementation.

“That has now reduced to four years and means that fleet and drivers running cars into a fifth year are left in the dark as to their tax liability.

“ACFO is pleased that the Chancellor has confirmed his intention to retain carbon dioxide (CO2) emissions as the basis for company car benefit-in-kind tax from 2020/21. It has become a well-established system that is straight-forward to understand and implement.

“In respect of reform of the tax bands for ultra-low emission cars, ACFO will naturally collect members’ views and respond to the government’s consultation document when available.

“ACFO has always supported the adoption of ultra-low emission vehicles by fleets and given the increased corporate demand for such vehicles, will seek the implementation of a tax regime that further encourages adoption.”

 

Salary sacrifice

“The Government has said that it is considering limiting the range of benefits that attract income tax and National Insurance Contribution (NIC) advantages when provided as part of salary sacrifice schemes.

“Many public and private sector organisations have already introduced car salary sacrifice schemes and ACFO is aware of many others that continue to consider their implementation.

“ACFO would advise companies to be aware of the Government’s review announcement when investigating the introduction of salary sacrifice arrangements.”

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Natalie Middleton

Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.