14 Jun 2024
The next government should prioritise extending the company car benefit-in-kind (BIK) taxation tables, the Association of Fleet Professionals recently stated.
The Association said that it has been two years since the current company car BIK tax tables were announced and they run only until the 2027/28 tax year. It stated that companies ordering vehicles today don't know the tax rate drivers will be charged at the end of this decade.
It has urged the next government to settle company car tax until 'at least' the 2029/30 tax year.
Paul Hollick, Chair of the Association of Fleet Professionals, said: 'There's been something of a structural change in recent years, with the popularity of electric company cars on fleets meaning businesses have started operating longer replacement cycles to help offset their higher purchase cost, rising from typically three years to four or five.
'This means that we need the benefit in kind tables to extend longer into the future than was previously the norm.'