Legislation changes which will affect UK Car Fleets in 2017

Here are the government legislation changes and announcements happening this year which will affect your UK car fleets:

  1. The 2017/18 company car tax rates (BIK) kick in in April (See below table)
  2. A salary sacrifice overhaul is due in the Budget 2017 to remove the Income Tax and employer NIC advantages of salary sacrifice schemes except for Ultra-Low Emission cars (ULEVs), with emissions under 75 grams of CO2 per km. This change will take effect from 6 April 2017 for new contracts. (For those already in salary sacrifice contracts at that date, changes will take effect on 6 April 2021.) Download the company car vs cash allowance fact sheet.
  3. The government will consider how benefits in kind are valued for tax purposes in the lead up to Budget 2017.
  4. From 1 April 2017, newly registered cars with a list price of over £40k will be subject to an additional £310 fee on top of the standard vehicle tax rate (VED) for 5 years. (The first year VED rate is calculated separately based on CO2 emissions.) Download 2017 VED Rates for new cars.

Latest company car BIK rates as announced in the 2016 Autumn Statement

"Standard" rate includes all non-diesel cars including petrol, electric vehicles and hybrids.
The 3% diesel supplement has been taken into account in the diesel columns. It applies to cars run solely on diesel fuel up to a maximum of 37%.