News

Autumn Statement delivers good news for dealers

Time 8 years ago

UnknownYESTERDAY’S Autumn Statement delivered by Chancellor George Osborne contained a number of new measures that are likely to have a positive impact on the motor trade.

The changes include a freeze in fuel duty, which is good news for dealers and the customers, abolition of the paper tax disc, which of course will simplify administration and a freeze in car MOT test fees at £54.85 until 2015.

Osborne also announced the removal of Employer’s National Insurance Liability for workers ages under 21 on earnings up to £813, meaning dealers with apprentices on site will save money.


However, according to Michelle Malone, senior tax manager at ASE Plc there is a specific problem area.

Malone said: ‘The detail behind the speech contains a change regarding company cars which could adversely affect a number of dealers. Company car tax is an increasing cost for the industry and we have seen more businesses using leased based arrangements, which try to remove vehicles from the normal rules.

‘New legislation in force from April next year aims to ensure that where an employer leases a vehicle to an employee this will be taxed as a car benefit. Once the draft clauses have been published dealers may need to revise their current arrangements.’

Commenting on the cancelled plans to increase fuel duty for September 2014, Mike Camburn, indirect tax partner at KPMG, said: ‘The Chancellor announced that the proposed fuel duty increase of 1.16 pence per litre planned for September 2014 would be scrapped, saving motorists around 90p each time they fill up an average 55 litre tank.

Advert

‘Cumulatively, with the various other duty freezes announced over the length of the Parliament so far, motorists are now benefitting from an average reduction of £7 each time they fill up a 55 litre tank.

He added: ‘By the end of this parliament, average pump prices will be 20 pence per litre lower, saving motorists £11 by 2015/16, according to the Chancellor in his speech.’

 

 

Car Dealer Magazine's avatar

Car Dealer has been covering the motor trade since 2008 as both a print and digital publication. In 2020 the title went fully digital and now provides daily motoring updates on this website for the car industry. A digital magazine is published once a month.

More stories...

Advert
Server 51