The 2017 Budget on March 8 confirmed the details of the CO2-based BIK bandings and rates for company cars in 2020/21.
A new BIK band structure for ultra-low emitting vehicles (ULEVs) will vary the appropriate percentage between 2% and 14% depending on the number of zero emission miles the vehicle can travel.
The Budget also confirmed a 2% increase in Insurance Premium Tax from June 1, and heralded the arrival of a new Vehicle Excise Duty (VED) system for cars registered on or after April 1 2017.
Cars already registered at that date remain under the previous scheme, with a Retail Price Index-based rate rise for those in Band D and above. But while motorists will see their company car tax, insurance and VED liabilities increase in 2017/18, there was some good news with the confirmation of a freeze on road fuel duty for the remainder of 2017.
The Chancellor also hinted at forthcoming changes to the tax treatment of diesel vehicles as part of its commitment to improving air quality, and announced a consultation process set to explore the appropriate tax treatment of diesel vehicles; prior to making any changes in the Autumn 2017 Budget.
The Toomey Leasing Guide to Company Car Tax examines the implications of the 2017 Budget for fleet operators and company car drivers. To find out more about company car tax for 2017/18, simple click here.
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