Pre-Budget Report - quick summary for Fleets
ACFO has assembled the following key-point summary of the relevant bits of the Pre-Budget Report for ACFO members.
Data input has come from various web-sites, HM Treasury documents and even a phone call from a policy advisor at HMT, who called to pass on the important transport points to key stakeholders. Nice to have this level of recognition for ACFO!MSO
Petersfield 09/12/2009
Health warning/ disclaimer: we've used all due care to get this quick analysis out based on initial information. Take professional advice before making any changes to existing policies.
Fleet stuff
Clear focus on the low-carbon/ electric vehicle situation; relatively little to hit mainstream fleet operations
* 100% FYA for electric vans on fleets from April 10 (already applicable to electric (and <110 g/km ic cars)
* Employee drivers of electric cars AND vans exempted from BIK for fixed 5-year period from Apr 10. Possible surge in interest from drivers as some models may start to be available by then
* From April 2012 the 10% BIK limit will start at sub-100 g/km, so a fairly substantial step-change for everybody anywhere on the scale. Max percentage of List remains at 35% (and now no cap at £80k). The 35% rate applies to emitters of 225 and above.
* Anyone still getting free fuel for private use will have the CO2 %age based on £18,000 from Apr 10. (was/ is £16.9k)
* Private use fuel benefit charge for vans to increase from flat-rate £500 to £550 pa
General Motoring
* Electric vehicles exempt from VED
* Fuel duty increase 1p per litre from Apr 10 (already signalled in Budget 09/ now confirmed)
* Biofuels - duty differential for these (bioethanol and biodiesel) to cease from Apr 10. Differential for converted/ re-used cooking oils "as this is sustainable" remains for 2 years
* £400m road improvement investment for M1 motorway - mostly to enable hard-shoulder running
* NEW £30m grant to be defined and refined through DfT/ BIS for further promotion of low-carbon vehicles
* No changes to VED for cars/ vans/ sub-400cc motorcycles, but £2.00 pa increase for VED on 401 - 600cc motor-cycles; for >600cc the increase is £4:00 pa
Corporate/ employment
* VAT rate returns to 17.5% from 15% temporary level, effective Jan 10
* 1p rise in corporation tax being postponed
* A further 0.5% rise in NI rates from Apr 11 for all employer, employee and self-employed - if earn less than £20 protected from the increase.
* "Time to Pay" concessions for Corporation tax/ VAT payments remain "for as long as necessary"
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