Are you confused by the recent spate of changes to the treatment of company car taxation? Has the Government’s demonization of diesel thrown your fleet policy into disarray? Are you in a quandary as regards how this will impact your vehicle fleet?
At Ogilvie Fleet we are working closely with our customers, providing guidance through this transitionary period by helping clients to understand the implications and how to mitigate the consequences.
Which models and fuels should you be considering for the future? How long should you keep the cars? Should you remove the Cash Allowance option completely, extend it to other drivers, reduce or increase it?
These are all questions which need careful consideration as the extra costs involved will be onerous if the situation is not addressed, but manageable, with a little foresight and preparation.
Changes which impact the Company:
- - New Diesel tax rates came into force in April 2018
- - VED rates for diesels increased in April 2018
- - WLTP (Worldwide Harmonised Light Vehicle Test Procedure) is being introduced as a new method to calculate MPG and CO2 emissions and will result in an increase in tax and NI contributions
- - Capital Allowance thresholds have changed. Generally, they will be less beneficial
- - As of 2019 a new accounting standard will be introduce which will eventually bring all leasing assets onto the balance sheet, affecting the strength of the balance sheet
All of the above will have an impact in the whole life costs of your fleet
Changes which impact employees:
- - OPRA – where a choice of car or cash allowance is offered the driver will be liable for tax on the greater monetary value. Many drivers may still be unaware of the impact to their personal taxation and the options available to them
- - The diesel surcharge rising from 3% to 4% will impact a drivers’ benefit in kind
- - WLTP will have a further impact on the taxable value to drivers’
Ogilvie offer a number of alternative mobility solutions. If you are unsure of where you stand and would like guidance on how this will affect your company and your drivers, contact your Ogilvie Area Manager here.