A number of announcements were made in March's Budget that will affect any company that operates fleet vehicles.

1) The Government is considering changing the structure of Approved Mileage Allowance Payments to 'ensure that rates & thresholds are set at an appropriate level to promote environmentally friendly business travel'.

2) In the 2006 Budget, the lower company car tax threshold of 15% was reduced from 140g/km to 135g/km from 6 April 2008. The thresholds for the 2009-10 rate will be frozen at 2008-9 levels.

3) Fuel duty rises by 2p per litre from 1 October '07.

4) There were multiple changes to rates of Vehicle Excise Duty (VED)

4a) The rate of VED for the most polluting Band G cars rose to £300 for 2007-8 and £400 for 2008-9.

4b) The rate on low carbon Band B cars was reduced from £50 to £35 for 2007-8 and frozen at that level for the next two years.

4c) The rates for cars in Bands C-E, cars registered before 2001 and all vans will rise by £5 in each of the next three years.

4d) The rate for Band A vehicles was frozen at £10.

4e) The Band F rate rose by £10 for 2007-8, then by £5 for each of the next two years.

5) All businesses that own vehicles could be affected by proposed changes to the capital allowances for cars.

The announcements were in line with the current green policies, affecting many more vehicles than just the most polluting cars,

For more information, please call us.