You might pay an annual single premium, but it is important to understand the changes that might occur when changing vehicles in your fleet. For example, if there’s an influx of high-risk models, your premiums will rise. Therefore, it’s important to manage the type of vehicles in the fleet to minimise the insurance premium.
Insurance, tax and other overlooked vehicle costs
These costs are not often front of mind when assessing the cost of a vehicle. This is especially true for insurance if your company pays a single premium block policy; however it does need careful managing.
Taxation is another aspect that is often overlooked. It’s not only National Insurance and personal taxation issues that you need to be aware of for employees, there are also many proposed changes to Vehicle Excise Duty to keep up to speed with too.
Upcoming changes to Write Down Allowances are another tax consideration. From April 2009, they’ll be based on a vehicle’s emissions rather than its value. So if you choose to purchase fleet vehicles with lower CO2 emissions, they will attract more generous Write Down Allowances.
Taxation is another aspect that is often overlooked. It’s not only National Insurance and personal taxation issues that you need to be aware of for employees, there are also many proposed changes to Vehicle Excise Duty to keep up to speed with too.
Upcoming changes to Write Down Allowances are another tax consideration. From April 2009, they’ll be based on a vehicle’s emissions rather than its value. So if you choose to purchase fleet vehicles with lower CO2 emissions, they will attract more generous Write Down Allowances.
Insurance
Taxes
One over-looked tax when calculating Whole Life Costs is your employer’s National Insurance contributions. At present it is calculated as a 12.8% percentage of the car’s P11D price in combination with the CO2 tax band. Vehicle Excise Duty is also directly linked to a vehicle’s level of CO2 emissions. New first year penalties and incentives will be introduced which cut road tax to zero for some of the cleanest vehicles.
Overlooked Costs
Another commonly overlooked tax implication is Write-down allowance, from April 2009, a vehicle's Write Down Allowance will depend on its C02 emissions. 85% of our vehicles qualify for a 20% Write Down Allowance (rather than 10%) when purchased outright because they emit fewer than 160g/km of C02.
Our Fleet Business Managers will keep you informed of other changes as we are aware of them.
To help work out rates of company car (Benefit-in-Kind) tax, simply use our Company Car Tax Calculator. And for more information read Company Car Taxation.
Our Fleet Business Managers will keep you informed of other changes as we are aware of them.
To help work out rates of company car (Benefit-in-Kind) tax, simply use our Company Car Tax Calculator. And for more information read Company Car Taxation.