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BiK Rates Company Car Tax

BVRLA urges Treasury to reverse decision on diesel levy and reform BiK ratings

Held on Friday 4 December at the KPMG offices in London, the a Business Vehicle Taxation roundtable saw senior representatives from HM Treasury, experts from KPMG, leading BVRLA members and a number of fleet end users take part.

The debate covered four policy recommendations for the Government:

  • Re-instate first year capital allowances to level the playing field for lease cars
  • Reverse the decision to keep the 3pp diesel supplement until 2021 and scrap it in April 2016.
  • Continue to incentivise the purchase and use of ultra-low emission vehicles
  • Reform benefit-in-kind (BIK) ratings, especially at the lower end of the emissions table where it said "the wide difference in BIK rates makes them too blunt a tool".

A follow-up meeting has been arranged with HM Treasury, where these recommendations will be discussed in further detail.

The Business Vehicle Taxation roundtable followed a debate on Air Quality, which took place in November. Hosted by the RAC Foundation, the event welcomed delegates from across the BVRLA’s membership, fleet operators, as well as representatives from the Department of Environment, Food and Rural Affairs, the Department of Health, the Department for Transport and the Office for Low Emission Vehicles.

Attendees agreed on a series of policy recommendations, including:

  • Develop a national framework for Clean Air Zones across the UK to provide consistency for fleets
  • Give more consideration to vehicles in urban planning, to minimise traffic congestion and thereby reduce emissions
  • Renew the Plug-In Grant for electric vehicles beyond February 2016 and provide sufficient notice when the scheme is to be amended.

“Our series of policy roundtables have seen us engage with members, industry experts and policymakers,” said BVRLA chief executive Gerry Keaney. “They have helped us shape our policy priorities for 2016, and we are indebted to all those who shared their valuable time with us.”

The recommendations from all four of the policy roundtables will be presented to Transport Minister Robert Goodwill at the BVRLA’s Parliamentary reception in the House of Commons on Wednesday 16 December.

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Natalie Middleton

Natalie has worked as a fleet journalist for 16 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. As Business Editor, Natalie ensures the group websites and newsletters are updated with the latest news.