Following the Chancellor Rishi Sunak’s Budget on 3rd March 2021, here are the highlights of the key issues that will directly affect you as motorists and fleet controllers. Our governing body the BVRLA (British Rental and Leasing Authority) have shared some helpful insights into each of the policies mentioned:
- Fuel duty will remain frozen for the eleventh consecutive year.
BVRLA view: A welcome respite for the motorist.
- HGV Road User Levy: suspend for a further 12 months from August 2021
BVRLA view: As there is not yet a newly established approach to the HGV Road User Levy which would be compliant with the UK’s international responsibilities, we believe this is the prudent approach. We will continue to engage with Government so that when the HGV Road User Levy returns it will work for our members.
- HGV VED frozen 2021-2022
BVRLA view: This is another good measure to try to assist hauliers given the impact of Covid-19.
- Vehicle Excise Duty (VED) - The government will update VED rates for cars, vans and motorcycles in line with RPI from 1 April 2021.
BVRLA view: HM Treasury is still looking at the VED regime and the BVRLA will continue to engage with officials to ensure any future reform will work for members.
- Fuel benefit charges and the van benefit charge - As announced by Written Ministerial Statement on 4 February 2021, the government will increase the van benefit charge and the car and van fuel benefit charges by the September 2020 Consumer Price Index. The change will have effect on and after 6 April 2021.
- For expenditure incurred from 1 April 2021 until the end of March 2023, companies can claim 130% capital allowances on qualifying plant and machinery investments.
- Company Car Benefit in Kind (BIK) tax will remain unchanged until 2025 as stated in the 2020 Budget.