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Fleet bosses call for BIK rate reveal

  • Fleet operators lobby government for tax changes
  • Concern at outdated legislation prompts calls for swift action
  • Vote in our poll to tell us which is the biggest issue

Fleet managers are calling on the Government to reveal what the company car benefit-in-kind rates will be up until 2015.

The Association of Fleet Car Operators - or ACFO - will be approaching Chancellor of the Exchequer George Osborne with a list of questions it would like answered and the subject of BIK rates is top of the list.

ACFO also wants the Goverment to remove what it believes is the 'outdated' 3% premium on BIK taxation for diesel cars and also called for the inflation rate +1p fuel duty rise scheduled for introduction in April to be axed.

Chairman of ACFO, Julie Jenner, said: "Amid continuing economic uncertainty, rising inflation and businesses struggling to contain costs it makes no sense to heap further financial pressure on companies through the tax system. The planned rise should be axed."
ACFO list of demands is as follows:
  • To reveal company car benefit-in-kind tax rates for at least 2013/2014 and ideally 2014/2015 too. Although rates are known until 2012/2013, many company car drivers will be choosing their cars now and are totally in the dark about how much tax they'll be eligible to pay in the future.
  • The removal of the out-dated 3% tax on company car benefit-in-kind taxation for diesel cars. In 2002 the levy was introduced as at the time diesel cars were more polluting, but recent technological developments mean this just isn't the case anymore.
  • Cancellation of the inflation rate +1p a litre fuel duty rise scheduled for April 1, which could possibly add up to 5p per litre to petrol and diesel prices.
  • Vehicle excise duty for sub-3.5 tonne light commercial vehicles to be linked to their carbon dioxide (CO2) output in a similar structure to cars thus incentivising the uptake of low emission vans.
  • A full review of the Approved Mileage Allowance Payments (AMAPs) system to allow for the factoring in of a car's CO2 emissions as part of the process. This should encourage more drivers to use low emission vehicles.

The organisation wants a response from the Chancellor as part of the Government's Budget statement on March 23.

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