Following the Chancellor’s announcement of the Spring Statement (2022), we’ve updated our interactive Tax Guide to help you understand the main personal and corporate tax rates, and their implications for your fleet.
The government remains committed to achieving its net zero ambition with no increase on the 2% BIK cap for zero emission vehicles up until 5th April 2025.* However, as expected, there was no announcement of car tax tables beyond this, which, for some, will leave some uncertainty as to what tax they will pay beyond 2025.
Every business with a fleet is already somewhere on the Sustainability Curve – the path from conventionally-fuelled vehicles to net zero carbon emissions. Wherever your fleet is on the curve today, we’re here to help evaluate your fleet’s fuel mix and review your fleet policy, to build and accelerate your business net zero roadmap.
Key headlines for fleets from Spring Statement 2022
One - 5 pence per litre fuel duty - reduction
With rising fuel prices and fiscal pressure, the chancellor introduced a cut of 5ppl to fuel duty which will remain in place until March 2023. After years of fuel duty freezes this was a historic move by the chancellor, with this being only the second reduction in 20 years; the benefit will be felt by businesses and personal drivers.
Two - Employee NIC primary threshold - changing to match income tax thresholds from July 2022
The chancellor also recognised the current pressure being faced by everyone and announced that from July the employee NIC primary threshold will be increased to match the income tax threshold. A move that will see many lower paid earners benefit.
Three - 1.25% Health & Social Care levy going ahead 6th April 2022
There had been pressure on the government to scrap the 1.25% Health & Social Care levy announced last year to come into effect in April, but the chancellor confirmed this would be going ahead as planned.
The net effect of the employee NI threshold increase, and the Health & Social Care levy will see a benefit for those earning <£34k from July.**
Four - Basic rate of tax cut from 20% to 19% from 6th April 2024*- (subject to spending conditions being met)
Another historic move from the chancellor as he pledged to reduce the lower rate of income tax in the UK from 20% to 19% in England, Wales and Northern Ireland - this however does come with strict inflationary and spending targets to be met. A welcome move for a majority of the UK tax payers.***
Get in touch with your account manager today to understand how the Budget affects your fleet policy.
While every effort has been made by Lex Autolease to ensure that the information given is not misleading, this information is provided only as an overview of the subject at the time of publication and is not a substitute for professional advice. No responsibility can be accepted by Lex Autolease for any loss or liability occasioned by any person acting or refraining from action as a result of this information.