Chancellor of the Exchequer Philip Hammond delivered his second Budget speech today (Wednesday, November 22, 2017).
Below we highlight the Chancellor’s key Budget measures that will impact on the company car and van sector and wider motor industry.
MiSalarySacrifice from Ogilvie Fleet offers an easy way for employees to drive away a brand new, fully insured and maintained vehicle, with one monthly payment through their salary. The Governments recent Finance Bill made some changes to the way the schemes operate, but Richard Jessop, Head of Salary Sacrifice is here to explain some common misconceptions about the changes.
FALSE. All that has changed is the tax treatment. The Government has approved car benefit schemes so it's business as usual.
FALSE. Around half of the salary sacrifice drivers currently in schemes are in cars that would not be affected by the new rules, either because they have opted for a ULEV or because the drivers are already paying more in gross Benefit in Kind (BiK) than the gross salary being sacrificed. For the rest, over a quarter will see an average increase of less than £2.50 per month.
FALSE. There are still huge savings to be made with NI savings and manufacturer discounts.
FALSE. NI for employees is NOT affected by the new rules. NI savings remain for all employees.
FALSE. The savings for ULEVs are greater under the new salary sacrifice rules, but drivers can continue to choose any car, make or model with varying savings depending on their own circumstances and the CO2 rating of the vehicle.
TRUE. Salary Sacrifice schemes are here to stay and still provide great value and worry free motoring.
For more information on MiSalarySacrifice, visit the website here, call 0330 333 1283 or email This email address is being protected from spambots. You need JavaScript enabled to view it.
Chancellor of the Exchequer Philip Hammond delivered his first Budget speech today (Wednesday, March 8, 2017).
It was also the final spring Budget as Mr Hammond announced in last November’s Autumn Statement a rescheduling of the two major fiscal-related announcements of the Parliamentary year.
Starting in the autumn, Britain will have an Autumn Budget announcing tax changes “well in advance of the start of the tax year”. From 2018 there will be a Spring Statement, responding to the forecast from the Office of Budget Responsibility, but no major fiscal event.
As a result, with today’s Budget coming just four months after the Autumn Statement it has been viewed as a “transitional Budget” with no dramatic or radical announcements.
Indeed many tax measures, including those relating to company car benefit-in-kind tax to the end of 2020/21, Vehicle Excise Duty for cars first registered from April 1, 2017, capital allowances, car fuel benefit charge, van benefit charge, van fuel benefit charge and Insurance Premium Tax had been previously announced.
Below we highlight those measures previously announced, alongside other tax changes and spending plans published in the Budget papers and impacting on the company car and van sector and wider motor industry.
In the Summer Budget 2015, the government announced a new measure for vehicle taxation, coming into effect from 1st April 2017.
As of Tuesday 10th January, all Ogilvie Fleet vehicle quotations will reflect the updated Vehicle Excise Duty figures. For vehicles available for delivery prior to 1st April, we will of course be happy to requote based on the current VED figures.
A full breakdown of the VED 2017 tables can be found in the Ogilvie Fleet taxation pages.
The system will still use the vehicles CO2 emissions to determine the tax payable, but also takes into account the value of the car. The vehicles emissions will determine the first year rate, up to £2,000 for the gas-guzzlers, with a standard rate of £140 payable from the second year.
Chancellor of the Exchequer Philip Hammond delivered the Government’s annual Autumn Statement in the House of Commons on Wednesday 23rd November 2016.
Sometimes described as a mini-Budget, he revealed to the nation the state of the country’s economy and public finances, in line with the latest economic forecasts from the independent Office for Budget Responsibility. It was Mr Hammond’s first Autumn Statement and it was also his last as he announced that he was abolishing the annual ritual.
Explaining that “no other major economy made hundreds of tax changes twice a year” in the spring Budget and the Autumn Statement, Mr Hammond said the spring Budget in March 2017 would also be the final one. Instead, starting in autumn 2017, Britain will have an autumn Budget, announcing tax changes “well in advance of the start of the tax year”. From 2018 there will be a Spring Statement, responding to the forecast from the Office of Budget responsibility, but no major fiscal event. Below we highlight what the Chancellor said in relation to the UK fleet industry and the wider motor industry in the 2016 Autumn Statement.
However, many issues remain to be clarified, particularly in relation to salary sacrifice rules and company car benefit-in-kind tax changes. The overview of legislation in draft, providing further information on all tax changes and updates on all tax consultations, will be published on December 5. Draft Finance Bill clauses, explanatory notes, tax information and impact notes, and responses to consultations will also be published on that date.
