Here are the government legislation changes and announcements happening this year which will affect your UK car fleets:
- The 2017/18 company car tax rates (BIK) kick in in April (See below table)
- 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.)
- The government will consider how benefits in kind are valued for tax purposes in the lead up to Budget 2017.