Calling for BiK clarity

ACFO: Lobbying for BiK guarantees

Fleet managers and company car drivers will cheer the news that ACFO is pressing the Government to guarantee five year benefit-in-kind tax rates. LeasePlan supports any such measures which give managers and drivers more certainty and allow them to plan for the future.

The recent Budget was a step in the right direction as it confirmed company car benefit-in-kind tax rates through to 2014. But a significant chunk of employees have their company cars replaced on a four-year cycle and under current policy they can’t be confident that their BiK taxes will be stable throughout that period.

Locking in tax rates for the full cycle of a company car will make life easier for all concerned by allowing them to evaluate the long term cost of vehicles. 

Managing Expectations

But employers and employees alike should not hold their breath. In the current environment, the expectation has to be of more CO2 related BiK increases. Employers should continue to set policies accordingly, selecting fleets which pull employees towards the lowest NIC and BiK vehicles.

Encouraging lower emitting vehicles will secure employers lower whole life costs, minimise environmental impact and at the same time help employees get the greatest benefit regardless of future tax changes.

So on behalf of all its drivers and managers, LeasePlan wishes ACFO the very best of luck with its lobbying.