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Activa issues Scottish tax warning for fleets
Date: 16 March 2018 | Author: Sean Keywood
Fleets have been reminded that from 6 April company car drivers in Scotland face larger tax increases than those in the rest of the UK, with new income tax rates introduced.
The rise has been flagged by leasing and fleet management company Activa Contracts, which has updated its software systems to include the country of residency of its customers' company car users.
The adoption of a new income tax structure in Scotland will coincide with rises in benefit in kind (BIK) company car tax rates imposed by the UK Government.
Activa says the new income tax rates for Scotland add a further layer of administration for businesses, which already face changes in the fleet industry including: the new Worldwide Harmonised Light Vehicles Test Procedure (WLTP); government pressure for fleets to embrace plug-in vehicles; the introduction of Clean Air Zones; the General Data Protection Regulation; lease accounting standard changes effective from 1 January 2019, and the impact of Brexit.
Activa Contracts managing director Ian Hill said: "The vast majority of our customers have fleet vehicles operating across the UK, including in Scotland.
"As a result, we have been making them aware of the significant tax changes from 6 April and also updating our systems to include a driver's country of residence.
"Company car drivers with a permanent address in Scotland will face a double whammy of BIK tax increases and an income tax increase, with perhaps only a small number of company car driving employees on lower salaries escaping the latter."
