In this short piece contributed by lease hire experts Tusker, Helen Owen looks briefly at the introduction of a legislation which could mean a big reduction for companies currently paying company-car related tax bills.
If you are a fleet manager looking to impress your Finance Department – take a look at the impact of the Euro 4 tax legislation. Under the new tax legislation, which comes into effect on 17th April, for all new cars with CO2 emissions below 120 gm/km, you will be able to claim 100% first-year allowances. This contrasts with 25% per annum capped at £3,000 for non-qualifying cars. In pounds terms this equates to an additional £3,900 of accelerated cash flow on a £16,000 car.
At the moment there is limited availability of Euro 4 qualifying vehicles, with the majority of cars falling into the super-mini category. However we can expect to see more and more typical fleet cars qualifying over the next 12 months, and with these tax breaks around it can only be good news for the environment and good news for the pocket.
About the author: Helen Owen is Marketing Executive for Tuskerdirect, a vehicle leasing company offering online access to company car hire and management services. Find out more about Tusker and download their company car tax calculator here.
