ACFO calls for advanced BIK notification
17 February 2014
Author: Martin Gurdon
Government should use the next Budget to reinstate four-yearly benefit-in-kind tax notifications, according Julie Jenner, director of fleet operator's body ACFO.
Jenner met HM Revenue and Customs' officials ahead of the 19 March Budget to call for advanced notification of the 2017-18 BIK rates.
"It is critical that fleet managers and company car drivers have the ability to calculate what their BIK tax bills will be on at least a four-yearly cycle," she said.
"We certainly hope that chancellor George Osborne will confirm tax rates for 2017/18 and maybe even 2018/19, with company car replacement cycles increasingly extending into a fourth and occasionally a fifth year."
She told officials that ACFO would also like to see:
. Confirmation of last year's Autumn Statement pledge to freeze fuel duty until after the next General Election.
. Clarification on electric vehicle advisory fuel rates and approved mileage allowance payments.
. Benefit-in-kind tax for ultra-low emission vehicles calculated on list price minus the Government's £5000 Plug-In car grant scheme, to encourage fleet take up.
"We also remain concerned that the Government is significantly increasing benefit-in-kind tax bills on electric vehicles from April 2015 and would urge that rates are reconsidered and lowered to further encourage company car uptake," said Jenner, who called on Government to set out how the £500m earmarked for plug-in grants between 2015-2020 would be spent.