1. Stratford-upon-Avon: 14th March 2013
Fleet News – Fleet200
The 2013/14 tax year for fleets
Dan Rees
Senior Manager
Deloitte Car Consulting
Stratford-upon-Avon: 14th March 2013

2. The 2013/14 tax year for fleets Contents
Timeline of changes
CO2 thresholds reduce for corporation tax
Impact of threshold changes on purchasing cost
Potential impact of threshold changes on lease cost
CO2 threshold changes summary
An eye on Europe
Cost savings – quick wins
Deloitte Car Consulting

3. The 2013/14 tax year for fleets Timeline of changes
2012/13
2013/14
2014/15
2015/16 & 2016/17
Company car tax
Removal of the 10% CCT rate for cars with CO2 emissions of 120g/km or less
Lower threshold rate of CCT
(10%) (1) set to apply to cars with CO2 emissions of 76-94g/km
Lower threshold rate of CCT
(11%) (1) set to apply to cars with CO2 emissions of 76-94g/km (1)
CCT rate of 0% of list price of electric cars to end on 5 April Previous rate of 9% reemployed  
Extension of the graduated CCT bands based on CO2 emissions down to 95g/km
CCT to increase by two percentage points, to a maximum of 37 per cent in both 2015–16 and 2016–17 
New lower threshold rate of CCT (10%) (1) set to apply to cars with CO2 emissions of 76-99g/km
3% diesel supplement abolished from 2016/17 onwards 
Private fuel benefit
Increase in the private fuel benefit multiplier to £20,200
Increase in the private fuel benefit multiplier to £21,100 
Corporation tax
Reduction in the main rate of corporation tax from 26% to 24%
Reduction in the main rate of corporation tax from 24% to 23%
Reduction in the main rate of corporation tax from 23% to 22%
End of first year allowances for low emission cars (95g/km or less)    
Reduction in the writing down allowances for the main and special rate pools for capital allowances from 20% to 18% and 10% to 8% respectively
Reduction in threshold CO2 level between main and special rate pools for capital allowances from 160g/km to 130g/km 
100% first year capital allowances extended until March 2015
Reduction in lease rental restriction threshold from 160g/km to 130g/km  
Reduction in the threshold for 100% first year allowances from 110g/km to 95g/km 
No first year capital allowances available for car leasing business 
(1) - Subject to the 3% diesel surcharge / changes announced in the 2012 Budget 
Deloitte Car Consulting

4. 15% lease rental restriction 15% lease rental restriction
The 2013/14 tax year for fleets CO2 thresholds reduce for corporation tax
Pre 1 April 2013
Emissions
Post 1 April 2013
8% allowance
15% lease rental restriction
8% allowance
15% lease rental restriction
160g/km
18% allowance
130g/km
110g/km
18% allowance
95g/km
100% first year allowance
100% first year allowance
Deloitte Car Consulting

5. The 2013/14 tax year for fleets Impact of threshold changes on purchasing cost
Deloitte Car Consulting

6. The 2013/14 tax year for fleets Potential impact of threshold changes on leasing cost
Deloitte Car Consulting

7. The 2013/14 tax year for fleets CO2 threshold changes summary
96-110g/km CO2 emitting cars
Purchasing: 100% first year allowance turns to an 18% annual allowance - cost increase
Leasing: Expect lessor to raise lease rental to cover increased cost of ownership
g/km CO2 emitting cars
Purchasing: 18% annual allowance turns to an 8% annual allowance – cost increase
Lease rental restriction of 15% kicks in – cost increase
Deloitte Car Consulting

8. The 2013/14 tax year for fleets An eye on Europe
We are seeing VAT judgements on cases presented at the CJEU have implications on VAT in the UK, particularly in the automotive space
VAT
CJEU
EON Asset
Finance lease is supply of services (in UK)
Title doesn’t pass at outset
VAT payable on each instalment
50% block in operation (lease)
CJEU considers supply of goods, as risk and rewards with lessee (not title)
VAT chargeable in full at outset
VAT 100% blocked
HMRC agrees with Deloitte’s view that this is not correct, but interim view only
50% restriction on lease rental
Apply for derogation from Europe every few years to apply flat 50% VAT recovery
Current one expires 31 December 2013
Restriction reflects element of private use
Commission requires report reviewing / explaining percentage (1 April 2013)
BGZ
European motor vehicle supplier supplying cars on lease plus motor insurance
CJEU deemed two separate supplies
IPT applicable to motor insurance
Important to check contracts to check IPT treatment correct
Deloitte Car Consulting

9. The 2013/14 tax year for fleets Cost savings – quick wins
SMART
MILES
FUEL
Where?
Cash allowances paid
Business mileage undertaken
Mileage reimbursed at less than AMAP
How?
Takes advantage of tax/NI free AMAP rates
Web system to produce payroll adjustment file every month based on mileage levels
How much?
Savings of £300-£600 per annum per driver (more business mileage, more savings)
Where?
Fuel cards provided
Fuel benefit arises (none or partial mileage capture)
How?
Removes fuel benefit and increases cash flow
Web system to produce payroll adjustment file once a year, or every month
How much?
Savings of ~£1,000 per annum per driver on average
Deloitte Car Consulting

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