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Specialists in business car lease and personal car lease. Still based in St Albans, Hertfordshire, we locate and build the best car leasing deals from around the UK.

News Calendar

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Paper tax disc abolished

Posted by Doug Percy on December 9, 2013 at 7:56 pm.
Filed under: Best Car News Items

The government used its Autumn Statement to announce the abolition of the paper tax disc, which is set to disappear from October 2014.

This is a major victory for the BVRLA, which has been campaigning for the Department for Transport to axe the tax disc for a number of years as part of a wider streamlining of DVLA services. Once used as a visible means of demonstrating that a vehicle has been taxed, the disc is no longer required because this can instantly be confirmed by accessing DVLA computers. It brings the tax disc into line with motor insurance, which does not need to be displayed in the vehicle.

“It is great that the Red Tape Challenge we participated in is continuing to bring results,” said BVRLA chief executive, Gerry Keaney. “We estimate that removing this pointless piece of paper would save the government around £3m a year, and save fleet operators £10m as well.” The government estimates that it will lose around £35m due to Vehicle Excise Duty evasion in 2013/14, which equates to around 210,000 un-taxed vehicles, or 0.6% of the traffic on UK roads.

 

Change to advisory fuel rates

Posted by Doug Percy on December 2, 2013 at 2:40 pm.
Filed under: Best Car News Items

HM Revenue & Customs has announced new advisory rates for drivers claiming reimbursement for fuel expenses incurred while driving on business. 

Employers are not obliged to reimburse their employees at these rates, which indicate the maximum tax-free level. The new rates appear below, with the previous rates within brackets.
Petrol

1,400cc or less 14p (15p)

1,401cc to 2,000cc 16p (18p)

Over 2,000cc 24p (26p)
Diesel

1,600cc or less 12p (12p)

1,601cc to 2,000cc 14p (15p)

Over 2,000cc 17p (18p)

 

LPG

1400cc or less 9p (10p)

1401cc to 2000cc 11p (11p)

Over 2000cc 16p (16p)

 

Full information on the current advisory fuel rates can be found on the HMRC website.

 

UK car production soars in October

Posted by Doug Percy on November 30, 2013 at 12:20 pm.
Filed under: Best Car News Items

UK car production grew by more than 17% in October 2013, with year-to-date production at nearly 1.3m, up 5.4%.

The latest SMMT figures contrast with those reported from Germany, France, Italy and Spain, where production levels have declined in 2013.

UK car manufacturing for the home market grew strongly in October with a rise of 52.4%. Much of this demand is coming from rental and leasing companies – a recent Oxford Economics report estimated that the sector was responsible for 82% of all UK-made cars sold domestically.

The SMMT said that the European market, which takes 50% of all UK car exports, was finally showing early signs of recovery after having recorded two consecutive months of growth.

UK engine manufacturing also grew in October, and is now up 2.4% for the year-to-date. The outlook was less rosy for CV manufacturing, which is down 20% in the first ten months of the year. The SMMT blamed low levels of demand across the EU and structural and model changes in the UK.

 

Corporate Culpability and the company car driver

Posted by Doug Percy on June 10, 2013 at 11:27 am.
Filed under: Best Car News Items

IF YOU run an SME, what should ‘Corporate Culpability’ mean to you? And should you be worried about it?

Throughout this series of articles, I’ve stressed the importance of taking seriously your corporate responsibilities towards ‘at work’ drivers.

The problem with exercising these responsibilities – your Duty of Care and compliance with the law – is often that the risks seem remote and intangible.

It’s easy to push the issues to the back of the queue when there are so many more pressing matters to attend to and the costs of driver assessments and training look so high.

But the other side of the problem is that if something does go wrong, and if one of your company car drivers is found to be culpable in a serious accident, the repercussions both for senior executives in the business, and for the business as a whole, can be very unpleasant indeed.

Health and Safety laws could lead to a prosecution, a court appearance, and a charge of Gross Negligence and you may still not be quite clear as to what you as an individual has done wrong!

In fact, compliance with Duty of Care legislation is now both much easier and cheaper than you may think. The first step is driver assessment, much of which can be done online these days.

Training must follow assessment

But having assessed your drivers, the next big trap to avoid is failing to act on the findings of the assessment.

When you think about it there is little point in getting your at work drivers assessed only to find out they are deemed to be at high risk and then failing to do anything about it!  It’s almost worse than failing to do the assessments in the first place.

Remember that assessing a driver is not training a driver – they are quite separate and should not be confused.

So once your drivers have been assessed, you must act on the results by ensuring you take the next step – remedial or intervention training which targets the areas that the assessment has shown to be poor or high risk.

This is where companies can be culpable – if they don’t act on the findings of an assessment and the driver is subsequently found to be at fault in an accident. Remember that there are two issues; was the driver at fault? And was the business at fault in failing to prepare the driver for the risks he or she would face.

The more serious the accident, the more serious the consequences. If a fatality is involved, company directors could well be charged with corporate manslaughter.

Civil actions

Here’s another point worthy of mention. Even if the police, HSE or Crown Prosecution Service don’t get you, remember that more and more court cases are being brought through the Civil Court.

Your defence will still need to show Audits Trails, and demonstrate that you have exercised your Duty of Care and compliance with HSE responsibilities. Moreover, if the other party becomes aware that you cannot mount a strong defence, they are much more likely to proceed against you.

Your audit trail must prove that you displayed sound ‘Corporate Governance’. There’s a real possibility that if it does not, you may no longer have a business to run, as your insurance company may cast you adrift for the same reason you have been sued in court.

So when you have your drivers assessed, move straight onto intervention training without delay to ensure compliance.

As we found out in my last article, much of this can be done online and needn’t break the bank.

 

Company car tax tables for tax years 2013/14 to 2016/17

Posted by Doug Percy on March 25, 2013 at 11:39 am.
Filed under: Best Car News Items

IF you want to know the company car tax banding of your next company car, then use our company car tax tables to help you.

The company car tax table shows the CO2 emissions band groupings in the left hand column. To the right are the benefit in kind percentages that are applied to the P11D value of your chosen company car each tax year.

To use the company car tax table you need

The CO2 emissions of your chosen company car

Your company car’s P11D value. The P11D is its ‘recommended on the road’ (ROTR) price including the full cost of any options added, as well as accessories over the value of £100 – less the first registration free and vehicle excise duty.

The fuel that your company car runs on – because until 2016 tax year, diesel cars are subject to a 3% company car tax surcharge (but not applicable to diesel hybrid vehicles)

To work out your company car tax, multiply the BIK percentage rate by your car’s P11D value to give you your benefit in kind. Then multiply your benefit in kind by your marginal rate of tax 20% or 40%.

If your company car’s CO2 emissions fall between bandings, round the number down to work out the company car tax band.

Company car tax tables

Taxable percentage of P11D value
Vehicle
CO2
g/km
2013-14
%BIK Rate
2014-15
%BIK Rate
2015-16
%BIK Rate
2016-17
%BIK Rate
Petrol Diesel Petrol Diesel Petrol Diesel All cars
0 0 0 0 0 5 8  7
1-50 5 5 5 5 5 8  7
51-75 5 5 5 5 9 12 11
76-94 10 13 11 14 13 16 15
95-99 11 15 12 15 14 17 16
100-104 12 15 13 16 15 18 17
105-109 13 16 14 17 16 19 18
110-114 14 17 15 18 17 20 19
115-120 15 18 16 19 18 21 20
121-124 16 19 17 20 19 22 21
125-129 17 20 18 21 20 23 22
130-134 18 21 19 22 21 24 23
135-139 19 22 20 23 22 25 24
140-144 20 23 21 24 23 26 25
145-149 21 24 22 25 24 27 26
150-154 22 25 23 26 25 28 27
155-159 23 26 24 27 26 29 28
160-164 24 27 25 28 27 30 29
165-169 25 28 26 29 28 31 30
170-174 26 29 27 30 29 32 31
175-179 27 30 28 31 30 33 32
180-184 28 31 29 32 31 34 33
185-189 29 32 30 33 32 35 34
190-194 30 33 31 34 33 36 35
195-199 31 34 32 35 34 37 36
200-204 32 35 33 35 35 37 37
205-209 33 35 34 35 36 37 37
210-214 34 35 35 35 37 37 37
215-219 35 35 35 35 37 37 37
220 or above 35 35 35 35 37 37 37

Changes in company car tax to note

Zero Carbon / Ultra Low Emissions Cars. From April 2015, zero carbon car five-year benefit in kind exemption ends and the lower company car tax rate for ultra low emissions company cars ends. From the 2015/16 tax year zero and ultra low emission cars will have two new bands: 0-50g/km and 51-75g/km.

From April 2016 3% diesel surcharge abolished

From 2015 a new top rate of company car tax rate for those cars with the highest CO2 emissions rises from 35 per cent of the list price to 37 per cent

 

The Budget: company car tax changes – diesel levy to go

Posted by Doug Percy on at 11:32 am.
Filed under: Best Car News Items

IN the Budget the Chancellor announced new emissions bands for company car tax for ultra low emission vehicles and confirmed the 3% diesel levy is coming off the company car tax menu.

These ultra low emission company cars cover the 0g/km, 1-50g/km and 51-75g/km tax bands.

The market for these vehicles is fragile, especially for use as company cars but with improvements in technology, especially range, in mind the Chancellor is trying to encourage take-up. However, many companies have little confidence in the projections for the costs, especially in terms of residual value, and take up so far, has been low.

The Chancellor also announced that he would be providing support to UK based manufacturers of ultra low emission vehicles through the tax system.

The current 3% additional levy on diesel engined cars is to be scrapped from 2016/17. The government has now committed to publishing changes in the tax bands for up to three years ahead in order that drivers are able to make informed choices for their next company car.

 

The Budget: Capital allowances on low emissions cars extended to 2018

Posted by Doug Percy on at 11:21 am.
Filed under: Best Car News Items

THE Chancellor announced in his Budget that first year allowances (FYA) for ultra low emission vehicles (ULVs) will be extended until 31 March 2018.

The current allowance had been due to terminate on 31 March 2015.

The Chancellor is hoping to improve the current tenuous take up of such vehicles.

But, from 1 April 2013 the emissions threshold below which cars are eligible for the allowance will drop from 110g/km to 95g/km.

However, the tax break drops again from April 2015, when it falls from 95g/km to 75g/km.

For SMEs who rely on leasing their business cars, an even bigger change is that leased cars will no longer be eligible for the 100% first year allowance – and the Budget has left this untouched.

The effect will be to raise the business lease rental cost of such cars by about £15 a month.

Many SMEs rely on leasing for their business vehicles and the removal of low emitting vehicles could potentially lead them to choose cars that are cheaper than ULVs but with higher emissions. This could well cause a backward step in the move to greener motoring that the government is supposed to be encouraging.

For business cars on the main rate, a reminder that there will be no transitional arrangements for capital allowances as it reduces from 160g/km to 130g/km from April 2013. Also the threshold above which the 15% Lease Rental Restriction applies also reduces from 160g/km to 130g/km.

 

Company car tax tables

Posted by Doug Percy on March 22, 2013 at 6:27 pm.
Filed under: Best Car News Items

IF you want to know the company car tax banding of your next company car, then use our company car tax tables to help you.

The company car tax table shows the CO2 emissions band groupings in the left hand column. To the right are the benefit in kind percentages that are applied to the P11D value of your chosen company car each tax year.

To use the company car tax table you need

  • The CO2 emissions of your chosen company car
  • Your company car’s P11D value. The P11D is its ‘recommended on the road’ (ROTR) price including the full cost of any options added, as well as accessories over the value of £100 – less the first registration free and vehicle excise duty.
  • The fuel that your company car runs on – because until 2016 tax year, diesel cars are subject to a 3% company car tax surcharge (but not applicable to diesel hybrid vehicles)

To work out your company car tax, multiply the BIK percentage rate by your car’s P11D value to give you your benefit in kind. Then multiply your benefit in kind by your marginal rate of tax 20% or 40%.

If your company car’s CO2 emissions fall between bandings, round the number down to work out the company car tax band.

Company car tax tables

Taxable percentage of P11D value
Vehicle
CO2
g/km
2013-14
%BIK Rate
2014-15
%BIK Rate
2015-16
%BIK Rate
2016-17
%BIK Rate
Petrol Diesel Petrol Diesel Petrol Diesel All cars
0 0 0 0 0 5 8  7
1-50 5 5 5 5 5 8  7
51-75 5 5 5 5 9 12 11
76-94 10 13 11 14 13 16 15
95-99 12 15 12 15 14 17 16
100-104 12 15 13 16 15 18 17
105-109 13 16 14 17 16 19 18
110-114 14 17 15 18 17 20 19
115-120 15 18 16 19 18 21 20
121-124 16 19 17 20 19 22 21
125-129 17 20 18 21 20 23 22
130-134 18 21 19 22 21 24 23
135-139 19 22 20 23 22 25 24
140-144 20 23 21 24 23 26 25
145-149 21 24 22 25 24 27 26
150-154 22 25 23 26 25 28 27
155-159 23 26 24 27 26 29 28
160-164 24 27 25 28 27 30 29
165-169 25 28 26 29 28 31 30
170-174 26 29 27 30 29 32 31
175-179 27 30 28 31 30 33 32
180-184 28 31 29 32 31 34 33
185-189 29 32 30 33 32 35 34
190-194 30 33 31 34 33 36 35
195-199 31 34 32 35 34 37 36
200-204 32 35 33 35 35 37 37
205-209 33 35 34 35 36 37 37
210-214 34 35 35 35 37 37 37
215-219 35 35 35 35 37 37 37
220 or above 35 35 35 35 37 37 37

Changes in company car tax to note

  • Zero Carbon / Ultra Low Emissions Cars. From April 2015, zero carbon car five-year benefit in kind exemption ends and the lower company car tax rate for ultra low emissions company cars ends. From the 2015/16 tax year zero and ultra low emission cars will have two new bands: 0-50g/km and 51-75g/km.
  • From April 2016 3% diesel surcharge abolished
  • From 2015 a new top rate of company car tax allowance for those cars with the highest CO2 emissions rises from 35 per cent of the list price to 37 per cent

 

What if my company car doesn’t have a CO2 figure?

You need to apply the following company car tax table which is based on engine size

  • 0-1400cc: 15% (petrol, gas and conversions); 18% diesel
  • 1401-2000cc: 25% (petrol, gas and conversions); 28% diesel
  • Over 2000cc: 35% (petrol, gas and conversions); 35% diesel
 

What pence per mile should I be paying my drivers?

Posted by Doug Percy on March 6, 2013 at 10:05 pm.
Filed under: Best Car News Items

A small business company director wants to know the correct business mileage rate for paying staff in their own cars

RECENTLY my employees have been moaning about the pence per mile rate I pay them for business mileage. At 25p a mile is this too little and should I be paying them more?

THERE is no right or wrong on this. The actual Approved Mileage Allowance Payment is 45p per mile (from 06 April 2011, 40p until that date), and this can be claimed tax-free by your staff. Although, given the cost of fuel, it is perhaps not surprising that your staff are feeling slightly shortchanged and grumpy.

However, if you pay less, you should make it clear to your staff that they can claim the difference between what you pay – in this case 25p – and the Approved Mileage Allowance Payment (AMAP), which is 45p for the first 10,000 miles: so in your example it is 20p per mile. This relief is called Mileage Allowance Relief.

Both from the perspective of your staff – and you as an employer – there is no tax payable, as long as the approved amount is not exceeded. Beyond 45ppm the employee’s excess will be liable to tax and the excess to National Insurance.

AMAPs can only be paid for business journeys undertaken in a private car. These include journeys made between premises or journeys made to a temporary workplace.

AMAPs can be paid for staff using their own car (45p per mile for the first 10,000 miles, 25p per mile thereafter); if they take a passenger, add an additional 5p per mile; for motorcycles it is 24p per mile; and for cycles 20p per miles.

The allowance is a personal one. So if a staffer changes their car during the tax year, the AMAP allowance does not re-set to zero on the new car.

 

Radical change to 2013 writing down allowances

Posted by Doug Percy on at 9:58 pm.
Filed under: Best Car News Items

 

THE CO2 emissions limits for company car writing down allowances are set to change radically from April 2013.

The 160g/km CO2 limit for company purchased cars, with a writing down allowance of 18%, is reduced to 130g/km. Currently, cars with CO2emissions greater than 160g/km qualify for a special writing down pool and are subject to an allowance of only 8% a year. From April 2013, this 8% rate will apply to all purchased company cars over 130g/km.

 

Tell me more about writing down allowances

Cars bought (but not leased or contract hired) by your company with CO2 emissions of less than 160g/km qualify as ‘main pool’ cars. The cost of all such vehicles is added to a single pool which can then be depreciated or written down by 18% per annum on a reducing balance basis.

 

Why has there been a change in the writing down allowances?

This huge drop in CO2 limits has been forced on the government because of the success of car manufacturers in reducing company car CO2 emissions. In turn this has meant a substantial drop in revenue. The government needs more money; and wants to persuade small businesses to purchase even lower CO2 emissions company cars through these fiscal changes.

 

What is the new 100% writing down allowance for cars?

There are radical changes too, for very low emission vehicles which qualify for a first year writing down allowance of 100%. From April 2013, the level at which a vehicle qualifies as a very low emission vehicle reduces from 110g/km to 95g/km. From April 2015 the 100% writing down allowance is removed altogether.

 

Anything else I should be aware of?

The main impact of the change in writing down allowances will be on cars with emissions between 130g/km and 160g/km. If you order, or commit to buy, the car before 1st April 2013 the 160g/km company car tax allowance limit will apply even if it’s not delivered or paid for. If it’s after 1st April then the new writing down allowance rules apply.

 
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