Pre-Budget Report
Key Points fleets need to know about the Pre-Budget Report
Electric vehicles tax boost
Alistair Darling has confirmed that he will give company drivers of electric vehicles a five-year holiday from benefit-in kind tax. Drivers of electric vans will also qualify for the same incentive.
Free fuel is not a benefit
The chancellor has raised the fuel benefit charge multiplier, making employees who receive fuel paid for by the company for pricate use even more worse off. This means a 40% tax payer must travel 13,000 private miles per year before 'free' fuel becomes a benefit and not a cost.
Fuel Duty will Rise Again
The chancellor has also confirmed that fuel duty will increase next year as planned. He rules out any further increases in fuel duty except for those alreay confirmed for April of the following two years. This equeates to a fuel duty increase by 1p in April 2010 and then same amouth in 2011 and 2012.
Claification over tax band
The Pre-budget report has confirm that the CO2 emissions thresholds for company car tax bands will reduce by 5g CO2 per km from 2012.
New incentive for electric vans
The report has also confirmed that companies that put electic vans onto their fleets will benefit from a 100% writing-down allowance.
VAT back to 17.5% from January 1st
VAT will go back up to its previous level of 17.5% on January 1 2010 after a year at the lower 15%, the chancellor had confirmed.
