LeasePlan UK has published its latest guidance on company car taxation.
The inside track: a guide to company car taxation, which has been published in associated with Deloitte, looks at the real-life impact of some of the most recent government announcements relating to company car provision and advises employers how to reduce their company car bill.
It also provides information for organisations on how to select the most appropriate fleet funding option and benefits structure.
The guide explains the impact of new tax provisions, including:
- The re-calibrating of CO2 thresholds for the capital allowance regime.
- The introduction of new company car tax bands to better support the take-up of ultra-low-emission cars.
- The cancellation of the planned September 2013 fuel duty increase.
- The additional 1% reduction in the corporation tax rate.
David Brennan, managing director of LeasePlan, said: “Anyone involved in the fleet market understands that taxation is a key cost driver.
“With new provisions announced every year and a complex timeline of when they come into force, we wanted to help employers understand how their own fleet will be affected.
“With greater awareness in society of the need to curb pollution and up to three million company cars on the road, the government is using the UK taxation system to incentivise lower-carbon fleets.
“It will come as no surprise that carbon emissions are a key factor influencing the tax structure, and should be a central consideration for employers when designing company car policies or choosing which [cars] to lease.”