Hybrids best option after tax changes, says Fleet Alliance

Fleet Management Services company Fleet Alliance says new tax rules coming into play in April make the case for including hybrid vehicles on fleet policies more compelling.

From April, the threshold for the main rate of capital allowances for business cars reduces from 160g/km to 130g/km, while the threshold for claiming 100 per cent first year capital allowances falls from cars emitting 110g/km to those emitting 95g/km.

The effects of a benefit-in-kind tax escalator also kick in, with a 1 per cent increase this year, another one per cent in 2014–15 and a two per cent rise in both 2015–16 and 2016–17 – a total rise of six per cent in four years.

Fleet Alliance believes hybrid models are now one of the best options for fleets, because they provide the greatest company car tax savings in the near term. Managing director
Martin Brown said: “We believe hybrids have a growing role to play in near-term company car policy, at least while the 3 per cent diesel supplement remains in place, providing drivers with conventionally sized company cars but minus the tax bill.”

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