Tax Relief

New tax breaks and the plug-in van subsidy: Subjects to speak about at March Fleet Information at 10 a.m.

The new 130% tax break announced by the Chancellor in the budget could lead more companies to opt for an immediate purchase in order to take advantage of the potential savings, according to the March broadcast of Fleet News at 10 a.m.

Panellists criticized the government’s decision to reduce the subsidy for plug-in vans from £ 8,000 to £ 3,000 for small vans and £ 6,000 for large vans without notice. The fleets agreed that the impact would be much greater than the decision to cut the subsidy on cars.

Matt Hammond, Fleet Manager at Altrad Services, said: “The vans are massive – there’s a gap between ICE and EV, especially for a fleet like mine, which is a lower mileage fleet. This will have an impact on the introduction of our electric vehicle. We had a goal, it will probably put us back at least six months. “

Lorna McAtear added, “Vans are at least three years behind in supply chain, progress and payload, so it’s harder to justify that. It has a massive impact on the vehicles I buy and the certificates I have, but there are other things on top of that, like the 130% depreciation. “

When the government takes with one hand, it often gives with the other hand, the panel debated McAtear’s argument about the positive upside potential of the 130% tax break announced in the budget for vans and some electrical infrastructure.

Paul Hollick, chairman of the Association of Fleet Professionals and a qualified accountant, explained the rules: “You spend roughly £ 100 on equipment and can cut £ 130 off your tax bill at the end of the tax year.”

With the two-year tax break scheme available to end-user fleet operators on the same criteria as the depreciation allowance, he added, “I think there will be an increase in fleets buying more vans in order to be able to remove capital from registration costs. “

In the meantime, leasing companies – if they are not eligible for an operating lease – could “dust off products like contract purchase and hire-purchase, which are property model leases where the capital relief can be claimed by the lessee rather than the lessor” .

Hollick also confirmed that the super deduction could be applied to electric vehicle charging stations in the workplace and possibly company-funded home chargers as well, although AFP waited for HMRC to look into whether that included the cost of installing the earthworks kit .

Listen to the fleet news at 10am to find out what this means for your fleet.

Panelists Lorna McAtear, Dale Eynon, Duncan Webb and Matt Hammond provided additional advice on overcoming depot-level power issues when investing in EV charging infrastructure, while Chris Connors and Paul Hollick provided guidelines to help fleets implement robust crisis and risk management protocols Taking into account the findings from the Covid pandemic.

The panel also discussed the potentially far-reaching impact of the Coca Cola case versus HMRC on the treatment of vans as benefits in kind – this is something that all fleets that drive crew vans must consider, including an important definition of glazing.

FULL LIST OF TOPICS IN THE MARCH FLEET NEWS AT 10AM:

  • The use of cameras, especially in cameras with cab and driver orientation – question from the webinar in February.
  • EV Grants: Check out the plug-in grants announcement and impact on auto and vans uptake
  • Van electrification strategies where range is an issue or load constraints and the ability to be towed are factors. Plus, the cost of upgrading the power supply to cope with office / depot charging points.
  • We will also take a look at the tax relief with super deduction announced by the Federal Chancellor in the budget.
  • Understanding and willingness to deal with crisis management: Are companies prepared for a fatal or severe crash?
  • When is a van not a van? The business implications of the Coca Cola v HMRC BIK case

THE EXPERT FIELD:

  • Paul Hollick, Chairman of the Association of Fleet Professionals
  • Lorna McAtear, Fleet Manager, National Grid
  • Duncan Webb, Fleet Manager, UK & Ireland, ISS
  • Dale Eynon, Defra Group’s Director of Fleet Services, Environment Agency
  • Chris Connors, Facilities and Fleet Manager, Countryside Properties.
  • Matt Hammond, fleet manager at Altrad Services
  • Chaired by Stephen Briers, Editor-in-Chief of Fleet News

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