DFC Belfast 25 Year Anniversary

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DFC Belfast 25 Year Anniversary

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  • Budget 2014

    Company car tax changes
    The appropriate percentage of list price subject to tax will increase by 2 percentage points for cars emitting more than 75 grammes of carbon dioxide per kilometre (gCO2/km), to a maximum of 37%, in 2017-18 and 2018-19. In 2017-18 there will be a 4 percentage point differential between the 0-50 and 51-75g CO2/km bands and between the 51-75 and 76-94 gCO2/km bands. In 2018-19 this differential will reduce to 3 percentage points. The differential will reduce further to 2 percentage points in 2019-20 in line with the Budget 2013 announcement.

    The Government remains committed to reviewing incentives for Ultra Low Emission Vehicles in light of market developments at Budget 2016, to inform decisions on CCT from 2020-21 onwards. Legislation will be in Finance Bill 2015.  The Chancellor talked about extending support for low emission vehicles, but there is precious little evidence for that in this Budget. The electric vehicle market is still in the doldrums, and the current incentive regime isn’t working. A company car driver thinking about choosing an expensive zero-emission vehicle this year knows that they will be taxed at 13% of its value within four years. Any cost benefit this industry might have received from the abolition of the 3% diesel supplement in 2016 has been dragged back and company car drivers will be contributing an extra £480m in annual tax revenues by 2018/9.

    Company van, car and van fuel benefit charge. These Benefit Charges will increase in line with inflation for 2015-16. The increase will be based on the September 2014 RPI figure. The changes will be introduced by secondary legislation later in 2014, in time for the normal tax code exercise in January 2015. Van Benefit Charge (VBC) Support for Zero Emission Vans – Legislation will be introduced in Finance Bill 2015 to extend VBC support for zero emission vans to 5 April 2020 on a tapered basis. In 2015-16 the VBC rate paid by zero emission vans will be 20% of the rate paid by conventionally fuelled vans, followed by 40% in 2016-17, 60% in 2017-18, 80 per cent in 2018-19 and 90% in 2019-20, with the rates equalised in 2020-21. The Government will review VBC support for zero emission vans in light of market developments at Budget 2016. Enhanced Capital Allowances (ECA) for zero emission goods vehicles - The Government will extend the ECA for zero emission goods vehicles to March/April 2018. However, to comply with EU State aid rules the availability of the ECA will be limited to businesses that do not claim the Government’s Plug-in Van Grant.

    Office of Tax Simplification changes to PAYE reporting and NI contributions Employee Benefits and Expenses – In response to the recommendations made in the OTS report on employee benefits and expenses published on 29 January 2014, the Government will consult on a package of four simplifications based on those recommendations, with a view to introducing legislation in Finance Bill 2015. The package consists of the following:  

    •    abolishing the threshold for the taxation of benefits in kind for those employees who earn less than £8,500;     
    •    introducing a statutory exemption for trivial benefits;      
    •    introducing a system of voluntary pay rolling for benefits in kind;
    •    Replacing the expenses dispensation regime with a Reimbursed Expenses Exemption
    The Government also confirms its intention to review the rules underlying the tax treatment of travel and subsistence expenses and, in addition, will issue a separate call for evidence on remuneration practices and patterns to inform any future reforms.

    Spending on roads
    The government will provide an additional £200 million in 2014-15 to set up a potholes challenge fund to increase further the amount local authorities spend on maintaining the local road network. This includes an allocation to devolved administrations.

    Vehicle excise duty (VED) rates 2014–15

    VED increases in line with RPI from 1 April 2014. Legislation will be introduced in Finance Bill 2014 to extend by one year the cut-off date from which classic vehicles are exempt from VED, and in a future Finance Bill to introduce a rolling 40-year VED exemption for classic vehicles. These changes will have effect from 1 April 2014. The Government will freeze the VED rates for Euro IV and V light goods vehicles in 2014-15.

    Fuel Scale Charges
    Whilst the revalorisation of fuel scale charges is no longer part of the Budget process, the revised tables have been published and will take effect from 1 May 2014. Fuel Duty Legislation will be introduced in Finance Bill 2015 to apply a reduced rate of fuel duty to methanol composed of 95 per cent pure methanol and 5% water, to be implemented from 1 April 2015. The rate of fuel duty applied to methanol will be 9.32 pence per litre. The size of the duty differential between the main rate and methanol will be maintained until March 2024, and the Government will review the impact of this incentive alongside the duty incentives for road fuel gases at Budget 2018.

    Contact customercare@dfcbelfast.co.uk if you would like a fact sheet on any of the above changes