Pre Budget Report October 2007

The 2007 Pre-Budget Report and what it means to company car drivers.

Income tax - Company cars

Nothing changed for now.
At Budget 2008 announcements will be made on future policy for the whole framework of car taxation.
Incentives for early adoption of Euro V cars have not been put in place even though the EU has now set emission standards for Euro V and Euro IV.

Income tax - Fuel scale benefit charges

A big jump from £14,400 this year to £16,900 from 6th April 2008 was announced. This will push the breakeven mileage even higher for those drivers with high private mileage that currently benefit from employer provided free fuel. It could still act as an incentive to drive more miles, as opposed to using other methods of transport, for those drivers that have this benefit.

The new rate has been added to the main tax calculator, but it will take us a day or so to program into the 3 year cost comparisons, Cash or Car calculator and Email to a friend.

VED

No changes for cars.

AMAPS

Still no conclusions from a long-running review.

ECOS

The Government has decided it will not impose a benefit in kind charge for schemes in which employers have some involvement in the provison of cars owned or hired by employees.