The government has announced it will be freezing company car tax, as well as making future changes to such costs more transparent.
Changes in tax rates explained
For those with vehicles registered before April 6th 2020, company car tax bands will stay at the 2020-21 tax rate until 2022-23.
Anyone registering new cars after April 6th 2020 will benefit from a tax cut of two percentage points, while zero-emission company cars will not be required to pay any tax at all.
Following this, company car tax rates will then increase by just one percentage point in 2021-22 and 2022-23.
Going forward, the government also promised to announce percentage rates and changes at least two years prior to their implementation in order to help business owners and fleet operators to plan more effectively.
It is thought the new measures could benefit around a million drivers of company cars, as well as acknowledging the partnership needed with fleet owners in the transition to greener vehicles.
The British Vehicle Rental and Leasing Association has welcomed the decision to freeze tax, with spokesperson Jay Parmar saying it shows the government is more appreciative that the fleet industry can help to deliver its wider economic and environmental ambitions.
He added: “The Treasury is giving back some of the unfair company car tax windfall it was set to receive … and providing some essential extra visibility on future tax costs for those looking to order their next vehicle. This is a good day for company car drivers and our members.”
Ellie Baker, brand manager at Fuel Card Services, comments: “Company car tax is just one of the many costs associated with running a business, but this freeze could provide a vital saving for fleet operators across the country.”
Figures published by the Society of Motor Manufacturers and Traders (SMMT) have highlighted a sixth consecutive month of growth in the UK’s light commercial vehicle (LCV) sector.
According to the body, LCV registrations increased by 13.5 per cent in June in comparison to the same time last year.
Sustained growth in consumer appetite
The excellent results witnessed in the first half of 2019 mean the period of January to June saw almost 200,000 registrations take place – an increase of 8.7 per cent against H1 2018.
Responding to the figures, SMMT chief executive Mike Hawes said: “With many LCVs playing a crucial role in urban areas, getting more of the latest, cleanest and most fuel efficient models onto our roads is essential to help improve air quality – so it’s good news to see the UK van market performing so well.”
That said, Mr Hawes warned that continued good fortunes for the sector will be reliant on a range of factors not necessarily in the industry’s control.
This includes securing a rise in business confidence in the months ahead, as well as an end to the uncertainty that has been caused by Brexit.
Jenny Smith, general manager for Tele-Gence, commented: “LCVs are the lifeblood of businesses up and down the country, so it’s great to see businesses continue to invest in these versatile vehicles, even when the future for many companies is not entirely certain.”
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The all-one-service portal called “My Fleet Hub” has recently been launched, bringing together an impressive suite of cost and time-savings services in one place.
My Fleet Hub is the vastly upgraded version of Fuel Card Services’ eServices website, where you could manage your cost-saving fuel cards. But, in addition, My Fleet Hub has an integrated line-up of added-value services making fleet management easier.
“Managing a commercial fleet is more challenging than ever.” says Fuel Card Services’ Managing Director, Denise Frost. “That’s why we have created a comprehensive solution to deal with the never-ending list of problems fleet managers and drivers face.”
“It’s what our growing portfolio of services has been leading up to for some time,” continues Denise, “and we’re excited to bring everything together in one portal – at your fingertips, accessible from anywhere.”
Service, savings, security
My Fleet Hub offers an impressive line-up of complementary fleet management services, each designed to make fleet management quicker, simpler, safer, and more cost-effective. It includes solutions to streamline administration, assist with compliance, reduce fraud, and of course manage your fuel card savings – all in one hub.
The full suite of services included with My Fleet Hub are:
MyService.Expert: saves up to 30% on fleet maintenance at garages nationwide
MileageCount: achieves significant savings by recording and reporting every mile
My Drivers Club: finds the nearest appropriate pump for drivers, with news and offers
Tele-Gence: installs an affordable, intelligent and simple fleet tracking system
CO2Count: helps you go greener sooner, by monitoring fleet carbon emissions
Card Protect: insures all of a fleet’s fuel cards against fraudulent usage