Reminder – changes to car tax and vehicle salary sacrifice from 1 April

Following my blog last month about upcoming changes to Vehicle Excise Duty (commonly referred to as car tax), I’m just giving you a gentle reminder as we get closer to them coming into effect on 1 April. With changes to vehicle salary sacrifice schemes being introduced on the same date, I also wanted to make you aware of these and how our frameworks can still help you achieve great value.

Vehicle Excise Duty changes
Any new car registered from 1 April will be subject to new Vehicle Excise Duty rules. This will affect all new vehicles purchased or leased via the frameworks.

The first year duty charges will also particularly impact the suppliers on lots 1, 2 and 5 of our Vehicle Hire Services (RM1062) framework, as they replace vehicles every 7-12 months to ensure that their fleet remains fuel-efficient and to the required high standard. We are working closely with suppliers to understand the impact and minimise any framework price increases that may be proposed. We will update you on the outcome of these discussions in due course.

For more information, view full details of the car tax changes.

Vehicle salary sacrifice changes
You may have heard about recent legislative changes that will alter the way salary sacrificed vehicles are taxed. These will also come into effect on 1 April. Due to the excellent terms we have secured with vehicle manufacturers and the competitiveness of our vehicle leasing companies, we are confident that our fleet frameworks still support great value for salary sacrifice schemes.

Salary sacrifice vehicles are often used as a way to replace employee owned vehicles (also known as grey fleet) being used for business miles. They are typically newer and more efficient vehicles, resulting in a better value solution for public sector organisations. Employers also have a responsibility under duty of care for their employees and maintained, newer vehicles can support this.

The Vehicle Purchase (RM1070) framework already offers attractive standard discounts of an average of 32%, and our Vehicle Lease and Fleet Management (RM3710) framework gives you quick access to live quotations from 12 funders in the market, enabling clear price comparisons.

Through our online fleet portal you can see the extensive range of vehicles available and have access to live quotes. You can then work with your appointed salary sacrifice scheme provider to offer this out across your organisation.

Interested in ultra low emission vehicles? These are unaffected by the changes to salary sacrifice scheme taxation, and support the operating of vehicles with lower emissions, and less damaging environmental impacts. Find out more about the cities going ultra low, and what you could do in your organisation.

If you have any questions about our fleet frameworks or the upcoming taxation changes, our team are happy to help. Please get in touch.