In a Budget designed to stimulate business and create good feeling with the public through income tax threshold improvements, investment in the NHS, a roadfunding boost and technology grants, Chancellor Philip Hammond disappointingly delayed many decisions relating to company cars.
While the Budget was broadly favourable for UK businesses as a whole, fleets will now face another waiting game to see how the Government plans to encourage or discourage different fuel types.
Following the reduction in grant levels for plug-in cars earlier this year the only message on the shift to electric cars came in the form of an extension of a charging point tax break.
Company car users and businesses will also have to wait until an unspecified date in the Spring of 2019 for clarity on benefit-in-kind (BIK) taxation beyond April 2021, which at that point will be just two years away.
The Government’s failure to address BIK, is a further blow to employees, employers, leasing companies, dealers and manufacturers.
Vehicle Excise Duty
Vehicle Excise Duty (VED) rates is not due until Spring next year. However, the one over-riding proviso that sits in the background of this Budget is that the Chancellor has stated that if no deal is reached on Brexit then he will need to issue a new Budget. In the Budget speech he said: “We will take action if needed and move the Spring statement to a full fiscal event if necessary.”
Company Car Tax
Fleets and company car drivers looking for information in the Budget about how much company car tax they will be paying from April 2021 will be disappointed.
Despite industry lobbying for both greater visibility on future company car tax rates and clarity on tax breaks for plug-in vehicles the Chancellor ignored these points...
Read more in our free Budget Autumn 2018 Report (pdf):