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ACFO Submits Action Plan for Government to Protect the Traditional Company Car

11 March 2019

​An institution close to our heart, the Association of Car Fleet Operators (ACFO) is striving for the government to adopt a six-point action plan in order to protect and enhance the growing demand of the company car as part of a company’s fleet. This comes as a direct result of the looming Worldwide Harmonised Light Vehicle Test Procedure (WLTP) which is due to become live in April 2019.

The introduction of this new legislative change is thought to generally increase the official CO2 emissions of cars by up to as much as 20%, although the Benefit-in-Kind (BIK) tax bands have not changed to reflect this, meaning that drivers end up paying significantly more tax to drive the same vehicle.

In an attempt to protect the traditional, well-loved company car, ACFO has urged the government to:

Realign BIK tax bands as a means of smoothing the transition to WLTP or consider an exemption for cars registered prior to 2020 to account for the significant rise in CO2 emissions under WLTP testing procedures.

Implement the 2% benefit-in-kind tax rates for cars with CO2 emissions of 0-50g/km immediately, rather than waiting until 2020/21 as currently scheduled.
Provide a continuous four-year overview of company car benefit-in-kind tax thresholds, allowing employers and drivers certainty over future bills.

Remove the existing 4% benefit-in-kind tax supplement on diesel cars that do not currently meet the Real Driving Emissions Step 2 standard.

Confirm an extension of the existing plug-in car grant scheme for at least two years, providing fleets with a period of stability and certainty in these uncertain months ahead.

Consider further incentives, such as congestion charge exemption and free parking in urban areas to encourage increased adoption of ultra-low emission vehicles when the WLTP is live.

At Marshall Leasing, we are conscious of the current legislative procures in place which are constantly changing and are always here to help. We understand that this is a testing time for all those interested or actively involved with fleet and are well-equipped to provide professional advice and services to help solve the current confusion in the market.

To find out more on how we can help with all of your fleet requirements, please visit our dedicated ‘Company Car Tax’ section on our website here, or call us on 01480 414541 and we would be delighted to assist you.

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