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.) Download the company car vs cash allowance fact sheet.
- The government will consider how benefits in kind are valued for tax purposes in the lead up to Budget 2017.
- 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.