LeasePlan, in consultation with Deloitte, has produced a guide for customers with fleet tax information
There’s no doubt that the impact of taxation as a cost driver to the fleet market remains as significant as ever. Our customers tell us they value the importance of having detailed information that helps them to set fleet strategy.
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To meet this demand LeasePlan’s consultancy services team produced a report with Big Four accountancy firm Deloitte to produce our latest guide to ensure our customers have useful access to the most up-to-date information on the subject. Despite the fact the changes announced in this year’s Budget were less significant than previous years, there are still important elements that must be considered when making fleet decisions.
As you would expect from any taxation publication, the guide provides a detailed look at this year’s Budget announcements including:
The newly announced Company Car Tax thresholds up to the 2018/19 Tax Year; The extension until March 2018 of the 100% first year allowances for zero emission goods vehicles and the reduced CO2 threshold of 75g/km applied to cars; The reduction in the rates of Corporation Tax from 23% to 21% and, in future years to 20%.
The latest version demonstrates that the stability currently afforded by company car-related legislation means that costs will remain relatively predictable for fleet managers over the next year.
The newly announced Company Car Tax thresholds in particular are a useful reference point for cost planning up to 2019.
LeasePlan has also found that previous years’ changes, which resulted in more significant cost rises, are now better understood by the majority of businesses. Commitments to continue broader reductions in Corporation Tax will also be good news for the bottom line for companies as we emerge from the recession.
Taking the time to translate the effects of Budget changes into ‘real world’ scenarios means our customers are presented with detailed examples, demonstrating exactly how the evolution of taxation policy will impact overall fleet costs and how individual elements or ‘levers’ of fleet policy are affected by changes. Even the smallest governmental tweaks can have significant cost implications over the lifetime of a fleet vehicle, and these are best explained through illustrative examples due to the number of factors to be considered. ~
We know that taxation is only one of the many elements that will influence fleet strategy.
For this reason, we also provide comprehensive information on wider fleet considerations – bringing clarity and simplicity to vehicle choice, funding methods, life cycle taxation impacts and fleet policy options, and we hope, providing valuable insight into optimising the operation of our customers’ fleets.
Matt Dyer is managing director at LeasePlan.
