Events
« January 2009 »
| S | M | T | W | T | F | S |
|---|
| | 1 | 2 | 3 |
| 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| 11 | 12 | 13 | 14 | 15 | 16 | 17 |
| 18 | 19 | 20 | 21 | 22 | 23 | 24 |
| 25 | 26 | 27 | 28 | 29 | 30 | 31 |
|
Worries mount over new tax rules coming in next April
publication date: Oct 23, 2008
|
author/source: Robin Roberts
Fleet decision-makers are both confused and concerned over the forthcoming changes in corporation tax rules as the clock continues to tick down to their introduction in April 2009.
That was the overwhelming consensus from two seminars organised by fleet operators' organisation ACFO and sponsored by leading vehicle leasing and management specialist LeasePlan.
The confusion and concern expressed at the seminars held in Oxford and Bradford springs from the continuing failure of the Government to announce the final details of the capital allowances and the rental disallowance, currently called the expensive car disallowance tax changes, the outline of which was announced in the Budget.
As a result, ACFO is demanding that HM Treasury publishes the full details of the new capital allowance rules for fleet cars in the 2008 Pre-Budget Report at the very latest. This speech is due to be held in the next few weeks, although a firm date has yet to be announced.
The key figure under the new rules is 160 g/km of CO2. Essentially, the complex new rules will make it more expensive for companies to run vehicles over 160 g/km irrespective of whether they lease or buy. Current projections indicate that the post tax net effect could see ‘effective' costs for a company car increase by £20 per month or more on vehicles emitting over 160 g/km.
However, within that broad guideline there are numerous other factors such as the cost of funding that need to be taken into account in calculating vehicle operating costs. Full wholelife costs including the value of any tax relief will be required to establish the real costs to the business.
As a direct result, many fleets will need to give serious consideration to their allocation policies if they are to avoid significant increases in costs at both pre-tax and after-tax levels.
|
.gif){kind=small}
