Fleet decision-makers\u2019 trade body ACFO has voiced its disappointment about changes to company car tax announced in the Budget.<\/p>\n
Company car drivers will face a three percentage point year-on-year hike in their company car tax from 2019\/20.<\/p>\n
But, the Government has indicated that the rates for ultra-low emission vehicles (ULEVs) will increase \u201cmore slowly than previously announced\u201d.<\/p>\n
John Pryor, ACFO chairman, said: \u201cThe Government is ploughing hundreds of millions of pounds into encourage the uptake of zero and ultra low emission company cars so ACFO is disappointed that benefit-in-kind tax rates on these vehicles are increasing further in 2019-20.<\/p>\n
\u201cGiven the government\u2019s focus on encouraging demand for electric and plug-in cars through a range of incentives, notably grants, ACFO would have expected the chancellor to reduce company car benefit-in-kind tax rates, not increase them, on these vehicles.\u201d<\/p>\n
ACFO believes that it would also potentially encourage company car drivers to turn to ULEVs if they paid benefit-in-kind tax on the P11D value of the vehicle after taking into account the plug-in-grant.<\/p>\n
He continued: \u201cCurrently company car drivers receive no benefit from choosing a car that is subject to a plug-in-grant, which only benefits the vehicle owner.<\/p>\n
\u201cIt is something that ACFO will continue to raise in its discussions with HM Treasury and HM Revenue and Customs.<\/p>\n
\u201cFurthermore, ACFO is also disappointed that the Budget did not clarify mileage reimbursement rates for electric and plug-in vehicles.<\/p>\n
\u201cOnce again, it is an issue that ACFO has frequently raised in discussions with civil servants and will continue to do so.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"