November/December 2016
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BVRLA News The bimonthly newsletter of the British Vehicle Rental and Leasing Association
Mixed tax messages in Autumn Statement In his first Autumn Statement as Chancellor of the Exchequer, Philip Hammond made a number of contradictory announcements affecting the fleet industry.
than 75g/km CO2 will be exempted. HM Revenue & Customs has said it will not penalise employer-provided car arrangements made before April 2017 until April 2021.
The decision to revise company car tax bandings for ultra low emission cars was welcomed by the BVRLA, although the association was disappointed that the changes would not take effect until April 2020.
With no mention of Vehicle Excise Duty in the Chancellor’s statement, the BVRLA expressed disappointment that the government was not reconsidering the new VED regime being introduced next year.
“We are pleased that the government has recognised the importance of the company car market in supporting the take up of ultra low emission vehicles,” said BVRLA Chief Executive Gerry Keaney. “The new bandings will create a much greater incentive for employers and employees to choose the cleanest electric and hybrid cars. However, the ULEV market could suffer in the meantime as company car tax costs rise significantly between now and 2019.” Hammond also announced that from April 2017, the tax and National Insurance advantages accruing to employers from ‘salary sacrifice’ schemes will be removed. However, following lobbying from the BVRLA, cars that emit less
More positively, from the association’s point of view, was the Chancellor’s extension of the fuel duty freeze for the seventh year in succession. Hammond also announced £220m for relieving traffic pinch-points on the strategic road network and an additional £390m investment in electric, connected and autonomous vehicles (including £80m for charging infrastructure). He also said that businesses would be able to deduct the full cost of a new electric vehicle workplace charge point from their beforetax profits. u For more on the Autumn Statement and subsequent Finance Bill see page 4. The 2016 Autumn Statement can be downloaded from the HM Treasury website: www.gov.uk
Christmas and the New Year The BVRLA offices will be closed from 2pm on 23 December until 8.30am on 3 January 2017. Orders for VE103B forms and copies of Fair Wear & Tear Guides received after 22 December will be delivered after 3 January 2017.
Members who want to remind themselves of what the BVRLA did in 2016 can read our Annual Review, which they shall receive through the post shortly. It is also available to read on the BVRLA website: www.bvrla.co.uk
Company car key facts: what you need to know The draft Finance Bill, which is expected to come into force next year, will affect Company Car Tax and salary sacrifice. page 4 McGowan set to make a big impression Alistair McGowan is announced as the entertainer for the BVRLA’s Annual Dinner 2017. page 5 Vehicle rental and leasing on the up At this year’s Industry Conference, the BVRLA revealed how the industry is going from strength to strength. page 6 CPD programme set to launch in new year A Continuing Professional Development scheme will be introduced to recognise members’ skills development. page 8 Q3 leasing survey shows positive outlook The BVRLA’s latest quarterly leasing survey has revealed an increase in business confidence among leasing members. page 9 Forums achieve high attendance figures BVRLA forums were attended by more than 300 individuals from member organisations in 2016. page 10
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