Budget ‘unlikely’ to affect company car numbers says Alphabet chief exec

According to Alphabet chief executive Richard Schooling, the up and coming budget is unlikely to diminish the popularity of company cars

Schooling stated: “The move from making 1 per cent to 2 per cent increases in the annual rate of company car BIK from 2015 sounds significant but, for a higher rate taxpayer driving a £22,000, 130g/km CO2 diesel, it will only add £1.50 a week to their BIK bill. Moreover, because the majority of company cars are diesels, most drivers will see their tax bill go down in April 2016 when the Government belatedly scraps the 3 per cent diesel surcharge.

Given that taxation is crucial to fleet policy planning, this Budget is also a welcome return to predictability, with car BIK now laid out for the next four years.”

Schooling continued: “The reduction in the CO2 thresholds for capital allowances, lease rental disallowances and the 100% first year allowance for low-CO2 cars were not unexpected. They will undoubtedly lead to further falls in average fleet emissions after 2013, with cost and tax benefits for both fleet operators and drivers.”

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