Activa Contracts has updated its ‘tax guide for fleets’ app to include a tax calculator.

The data-driven ‘tax guide for fleets 2017/2018’ calculator enables users to calculate if a cash alternative offered by their employer will increase their tax bill.

It calculates the monthly tax bill on a specific company car and will reflect all the spring budget tax announcements, including reforms to car salary sacrifice and car or cash allowance tax rules.

Activa Contracts’ sales and marketing director Lisa Temperton said: “Employees driving their own cars on business trips continue to prove to be an administrative and compliance burden for many employers. We believe a company car remains exceptional value for money for both employers and employees and limits organisations’ risk exposure.

“Our enhanced app is a tool in proving the case and helping employees make the cash or car decision with all the information at their fingertips."

The app, generated in partnership with BCF Wessex, can update any tax changes within hours of being announced. It will automatically update following the June 8 general election and any subsequent emergency budgets, alongside the November budget.

BCF Wessex director Jeff Whitcombe said: “A huge number of company car drivers are offered a cash allowance as an alternative to a company car. The new way that benefit-in-kind tax is calculated may give them a financial headache if they don’t consider the effect cash alternatives now have on the cash or car decision. We believe we are the first to introduce this particular functionality to a benefit-in-kind tax calculator.”

As well as the benefit-in-kind tax calculator, the updated ‘Tax Guide for Fleets 2017/2018’ tool includes:

  • All tax relevant tables including income tax rates/personal allowances, National Insurance rates/thresholds, corporate tax rates, capital allowances/lease rental restriction information, car and van benefit-in-kind tax rates, car and van fuel benefit charge rates, information on plug-in car and van grants, approved mileage allowance payment rates and advisory fuel rates, vehicle excise duty rates and VAT information including VAT on private fuel rates.
  • A summary of the 2017 spring Budget as it impacts on the fleet industry and company car and van drivers.
  • A glossary of terms used when discussing company cars and vans.

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Author: Elizabeth Howlett