ACFO calls for five year BIK notice

ACFO is to call on the Government for five years advance notice of future company car benefit-in-kind tax rates.

Historically, the Government has given three years notice of company car benefit-in-kind tax thresholds, but that has slipped to two years with the year-old coalition regime.

In the spring Budget, the coalition Government confirmed company car benefit-in-kind tax rates through to 2013-14.

ACFO chairman Julie Jenner said: “Many employees have their company cars replaced on a four-year cycle so they remain in the dark as to what their benefit-in-kind tax burden will be in the fourth year.

“For example, an employee choosing their company car today and expecting not to replace it until 2014-15 has no clarity as to what their future tax bill will be.”

The suggestion of five years advance notice came at this year’s ACFO Conference and AGM, which was sponsored by Kia Motors - Business and was held at the Heritage Motor Centre and Museum, Gaydon. A record more than 180 delegates booked to attend this year’s event.

Jenner said: “One of the many strengths of ACFO is the dialogue that we enjoy with a wide cross-section of Government departments including HM Treasury and HM Revenue & Customs.

“We had success with calling for three years advance notification and with some fleets adopting longer vehicle replacement cycles, we will push for five years in our talks with Government officials.”