The Autumn Statement last week was aimed at boosting productivity whilst maintaining the Government's green agenda, and the Chancellor of the Exchequer Philip Hammond announced a range of key measures that will affect the fleet industry. This article highlights 7 points you need to be aware of:
As we reported on Wednesday, tax and employer national insurance benefits of salary sacrifice schemes will change in accordance with the consultation paper previously published with the exception of Ultra-Low Emission Cars i.e. vehicles defined as emitting less than 75g/km of CO2. However, current vehicles and those contracted prior to April 2017 cars will continue to operate under the current tax structure.
Fuel Duty Frozen
Citing savings for the average car driver of £130 a year and the average van driver £350, fuel duty has been frozen for the seventh consecutive year.
£2.6 billion has been allocated in the Autumn Statement to tackle congestion and improve the UK’s transports network, specifically:
- £1.1 billion to upgrade local roads and public transport to reduce congestion and improve road safety.
- £80 million to install more ultra-low emission vehicles charging points.
- £390 million to build on our competitive advantage in low emission vehicles and the development of connected autonomous vehicles.
Corporation tax will reduce to 19% in 2017/2018 as part of the planned reduction to 17% by 2020.
Capital allowances for electric vehicle recharging point
Until March 2019, there will be a 100% first year allowance for companies who install electric vehicle charge-point, allowing companies to deduce the cost of the charge-point from their pre-tax profits each year.
Car and van fuel benefit charges
Benefit-in-kind tax bills rise from April 6, 2017 for employees who are in receipt of company-funded fuel used privately.
- Car fuel benefit charge 17/18 – increases from £22,200 to £22,600
- Van fuel benefit charge 17/18 – increased from £598 to £610
Insurance Premium Tax
From June 1 2017, Insurance Premium Tax will increase to 12%, up from the current 10%.
The government are also consulting on plans to reduce the number of whiplash claims and allow insurers to cut premiums. Whiplash claims are a major area of insurance fraud and could save drivers an average of £40 on their annual premiums.
Pendragon Vehicle Management has been providing expert fleet advice for over 30 years. Talk to us about how we might be able to help you with your fleet.