Remember the times when the UK Government would announce company car tax rates 5 years ahead?
This allowed Fleet Operators and Company Car Drivers to plan their next vehicle choice strategically given most company cars will be on 3 or 4 year contracts, as a result drivers migrated to lower emitting vehicles and overall C02 output declined, a win for drivers and reduced environmental impact.
Those days seem like a distant memory now, with the recent WLTP (NEDC) impact and government BIK tax banding changes Company Car tax has increased significantly in recent years and months and now we are in a position where any driver with a contract ending after 2021, hundreds of thousands of drivers, does not know what their tax position will be from April 2021 onwards.
In addition any drivers now selecting a new vehicle will be in the same position, no clarity beyond the next 2 and a half years, its not clear how this is supposed to drive overall Company Vehicle strategy which previously seemed to be based on reducing total emissions.
Any wonder many drivers are simply opting out of Company Car schemes, taking their Cash Allowances and signing up for Personal Contract Hire deals instead?
For Fleet Operators we will expect to see more delayed decision making as we wait and see what the Finance Bill brings and potentially waiting till Spring 2019.
Quite how this supports the Government's Road to Zero Strategy isn't known at this stage.