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New company car tax bands and rates tax year 2020-21

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New company car tax bands and rates tax year 2020-21

Electric cars are the future of the company car, the personal BIK cost is very low. For example, a £100k Tesla would cost a 40% Tax payer £66.66 a month, compare this to a £100k diesel 4×4 with a CO2 greater than 160g/km and it woudl be £1,233 a month.  This table will help you choose your next company car, it will show you how to save money on your personal tax liabilty.

For more information, or to obtain a contract hire or leasing quote on a new car or van, then call 0161 406 3936.

CO2 bands (g/km) – 2020 / 2021 tax year Electric range (miles) Percentage of list price to be taxed – PETROL (diesel +4%)
0 – 0 g/km 2
1 – 50 g/km >130 2
1 – 50 g/km 70 – 129 5
1 – 50 g/km 40 – 69 8
1 – 50 g/km 30 – 39 12
1 – 50 g/km <30 14
51 – 54 g/km 15
55 – 59 g/km 16
60 – 64 g/km 17
65 – 69 g/km 18
70 -74 g/km 19
75 – 79 g/km 20
80 – 84 g/km 21
85 – 89 g/km 22
90 – 94 g/km 23
95 – 99 g/km 24
100 – 104 g/km 25
105 – 109 g/km 26
110 – 114 g/km 27
115 – 119 g/km 28
120 – 124 g/km 29
125 – 129 g/km 30
130 – 134 g/km 31
135 -139 g/km 32
140 – 144 g/km 33
145 – 149 g/km 34
150 – 154 g/km 35
155 – 159 g/km 36
160 and above g/km 37 (max)

Electric range (miles) is the number of kilometres declared on the certificate of conformity or type approval certificate and multiplied by 0.62.

The CO2 differential favouring petrol over diesel in the current rates – see table below for 2016/17 – continues until 2020/21 when diesels with emissions over 149g/km will join the top band on 37%.

Image result for low emission cars bik

Spring Statement 2018 – Five key points relevant to the Car/Van Leasing Industry

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The Chancellor of the Exchequer, Philip Hammond, has delivered his first Spring Statement, in place of the old Spring Budgets. As billed, this was much lighter than previous fiscal events, but it still contained a number of important announcements, from new economic forecasts to new policy consultations. We’ve picked out the five key points.

 

  1. Economic growth

The Office for Budget Responsibility (OBR)’s latest forecasts – published alongside the Chancellor’s statement – were little changed from the last ones they produced in November.

 

The outlook for 2018 has improved very slightly, with GDP now expected to rise by 1.5% this year instead of the 1.4% predicted in November. However, the OBR still sees the UK as being stuck in a pattern of low growth, with GDP rising by between 1.3% and 1.5% in each of the next four years – well below the long-run average of 2.4%.

 

  1. The deficit

While the economic outlook didn’t really get any brighter, the new fiscal forecasts were a little better than November’s. Government borrowing in the current fiscal year (2017-18) is now expected to total £45.2 billion – slightly lower than the £45.8 billion borrowed last year. It’s then forecast to fall steadily, to £21.4 billion in 2022-23.

 

The Chancellor was also able to boast that these forecasts predict ‘the first sustained fall in debt in 17 years’. However, Hammond isn’t doing so well compared to the overarching target he has set himself: eliminating the deficit by 2025. Although the OBR’s forecasts don’t extend that far, it does say that ‘meeting this objective appears challenging’.

 

  1. Inflation

As we reported in our preview of the Spring Statement, prices have risen rapidly in the past year. Judged by the Consumer Prices Index, inflation is currently at 3% – well above earnings growth. Fortunately, the OBR predicts that inflation will soon start to fall steadily, before reaching the Bank of England’s target of 2% in early 2019.

 

At the same time, average earnings growth is expected to pick up, such that incomes will be rising faster than prices from this middle of this year. That will be a welcome relief to families who’ve felt their budgets being squeezed in recent months.

 

  1. Incentivising low-emission vans

Philip Hammond had promised no major policy decisions in the Spring Statement – and he stayed true to his word. However, he did announce a number of consultations on potential new policies – including one that will be of particular interest to commercial vehicle fleets. The Government will be consulting on ‘reduced VED [Vehicle Excise Duty] rates for the cleanest vans’, the Chancellor said, to ‘help the Great British White Van driver go green’.

 

This is welcome news. Reducing vehicle emissions is a crucial part of the fights against climate change and air pollution, and vans must be part of that conversation. However, we will have to wait until the consultation document is promised to learn what the Government actually has planned.

 

Does ‘cleanest’ mean only electric vans? Or will it also include petrol and diesel ones that meet the latest emissions standards? And what form will these reduced rates take?

 

  1. Company Car Tax

Despite calls from the fleet industry, the Chancellor did not find room in his slimmed-down Spring Statement to unveil the Company Car Tax (CCT) rates for 2021-22 or 2022-23.

 

This means that drivers and fleets entering into 48-month leases today do not know how much tax they’ll be paying in the final year of their contracts. Philip Hammond must give them clarity by publishing the new CCT rates in his Autumn Budget – if not before.

Short term hire – 3, 6, 9 and 18 Month Car & Van Leasing offers on stock vehicles

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Are you looking for a short term car or van hire solution?

We have a new proposition to offer our customers, we can supply you a car or van on a 3 Month (3 x 28 days) leasing/hire contract  that can then be extended up to 18 months.

This is an example of our current hire vehicles, most of which are in stock for a quick delivery;

Cars on short term lease;

Audi A3 Saloon S line 2.0 TDI 150 PS 6-speed – £13.70 +VAT Per day

Audi A4 S line 2.0 TDI 150 PS S tronic – £14.41 +VAT Per day

 

Audi A4 Avant Sport 2.0 TDI ultra 150 PS 6-speed – £13.75 +VAT Per day

Audi A4 Avant S line 2.0 TDI 150 PS S tronic – £15.58 +VAT Per day

Audi A5 Coupe S line 2.0 TDI quattro 190 PS S tronic – £17.91 +VAT Per day

Audi A6 Avant S line 2.0 TDI quattro 190 PS S tronic  – £17.86 +VAT Per day

Audi Q2 Sport 1.6 TDI 116 PS 6-speed – £12.49 +VAT Per day

VW Golf SE 1.6 TDI 115PS 5-speed Manual 5dr  –  £13.27 +VAT Per day

Mercedes C200 Estate 17.5 SE EXEC EDTN 9GT – £21.99 +VAT Per day

Mercedes C220d AMG Saloon 4DR 17.5 AMG LINE 9GT – £18.11 +VAT Per day

 

Vans on short term lease;

Small – Citroen Berlingo/VW Caddy – £12.56+VAT Per day

SWB – Vauxhall Vivaro L1H1 / Renualt Traffic LL29 – £14.37+VAT Per day

LWB Hi-Roof – Citroen Relay 35 LWB Panel Van – £17.09+VAT Per day

(please note that the van models offered are an example, equivalent models may be offered at point of enquiry)

 

All hire vehicles will include;

  • Servicing, Maintenance and tyres.
  • Breakdown recovery
  • Free collection and delivery (including Northern Ireland)
  • 20,000 miles per annum (pro-rata basis – higher mileage rates are available)
  • No termination costs after the 3 x 28 day period.

For more information about this short term car and van leasing/hire offer please contact the office on 0161 406 3936 or email sales@dsgauto.com

Subject to availability. Please note this product is only available to businesses that are not regulated by the Consumer Credit Act. Currently excludes start-up businesses. Prices are quoted on a daily basis excluding VAT, minimum 84 day hire period. Rentals based on 3-month minimum hire basis, 20k p/annum pro rata.

Changes to Capital allowances for business cars – April 2018 & IASB January 2019 Changes to ‘Capatalised’ Leases

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How will the changes in Capital Allowance rates effect business’s from April 2018?

Any Business incurring expenditure from April 2018 on the acquisition or leasing (contract hire or finance lease) of cars for use in their business will be subject to the new rules.  These new rules are in place to encourage fleet operators to consider low/lower CO2 rated cars, the CO2 rate at which you can claim 100% of the rental is about to be reduced again, it used to be set at 160 g/km, now it is 130 g/km and from the 1st April 2018 it will be 115 g/km.

Below is a brief summary of the pending changes, for more detaiuls please visit the HMRC website or consult your accountant, this information is for guidance only;

For Purchases

  • 0 to 75*g/km = 100% 1st Year Allowance
  • 76 to 130**g/km = 18% Pool
  • 131+g/km = 8% Pool
  • *Excludes leasing companies
  • *50g/km from April 2018
  • ** 110g/km from April 2018

 

For Contract Hire

  • 0 to 130***g/km = 100% of rentals allowable
  • 131+g/km = 85% of rentals allowable
  • ***This includes any unrelieved VAT (VAT not reclaimed through your quarterly VAT return)
    • *** 110g/km from April 2018

Cars first available for use on or before 31/03/2018, old rules will apply for the duration of the lease (including extensions).  If the car’s CO2 is greater than 130g/km (110g/km from April 2018), unreclaimed VAT is also restricted to 85%.  Case law in this situation is Britax International GmbH v CIR [2002]; Parker LJ said in paragraph 72, “I also bear in mind that the concept of ‘expenditure’ is wide enough to include payments which may not strictly be regarded as rentals.  This includes any element of unrelieved VAT”.

IASB (International Accountancy Standards Board)

  • IFRS 16 eliminates the classification of leases as either Operating Lease or Finance Lease
  • Instead all leases are treated in a similar way to Finance Lease applying IAS 17
  • Leases are ‘capitalised’ by recognising the present value of the lease rentals and showing them either as lease assets (right-of-use assets) or together with property, plant and equipment
  • Effective January 2019 (subject to confirmation)

 

Farewell Fossil Fuel Cars…

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The Government is expected to announce sales of new diesel and petrol cars and vans will be banned from 2040 as part of efforts to tackle air pollution.

Expectedly a £255m fund is to be unveiled to help councils speed up local measures to deal with pollution from diesel vehicles, as part of £3bn spend on air quality.

The Government is set to include the 2040 ban in a court-mandated clean air strategy due to be published on Wednesday, just days before a deadline set by the High Court.

The expected move to ban petrol and diesel vans and cars follows similar plans announced in France this month and amid increasing signs that the shift to electric vehicles is accelerating.

On Tuesday, BMW announced plans for an electric Mini to be assembled at its Oxford plant while earlier this month Volvo unveiled its moves towards cleaner cars.

The Government was ordered to produce new plans to tackle illegal levels of harmful pollutant nitrogen dioxide after the courts agreed with environmental campaigners that a previous set of plans were insufficient to meet EU pollution limits.

It is thought ministers will also consult on a diesel scrappage scheme to take the dirtiest vehicles off the road.

Campaigners have demanded the final plans should include government-funded and mandated clean air zones, with charges for the most polluting vehicles to enter areas with high air pollution, as well as a diesel scrappage scheme.

Their calls for charging zones were backed up by an assessment published alongside the draft plans which suggested they were the most effective measures to tackle nitrogen dioxide, much of which comes from diesel vehicles.

But ministers have been wary of being seen to “punish” drivers of diesel cars, who they claim bought the vehicles in good faith after being encouraged to by the last Labour government on the basis they produced lower carbon emissions.

Air pollution is linked to around 40,000 premature deaths a year in the UK, and transport also makes up a significant share of greenhouse gas emissions.

A Government spokesman said: “Poor air quality is the biggest environmental risk to public health in the UK and this government is determined to take strong action in the shortest time possible.

“Our plan to deal with dirty diesels will help councils clean up emissions hotspots – often a single road – through common sense measures which do not unfairly penalise ordinary working people.

“Diesel drivers are not to blame and, to help them switch to cleaner vehicles, the Government will consult on a targeted scrappage scheme, one of several measures to support motorists affected by local plans.”

What are your thoughts?

France plan to ban Fossil Fuel Cars by 2040

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The French government has set out an ambitious goal for no more petrol or diesel cars to be sold in the country by 2040.

The target was announced by environment minister Nicolas Hulot as part of far-reaching efforts to wean the world’s sixth biggest economy off fossil fuels.

At a news conference unveiling a five-year government plan to encourage clean energy and meet France’s commitments under the Paris climate accord, Hulot said French car manufacturers have projects that “can fulfil that promise”.

His appeal came a day after Sweden’s Volvo became the first major car maker to pledge to stop making cars powered solely by the internal combustion engine.

France is unusually dependent on diesel fuel, blamed for pollution that often chokes the French capital. The Paris mayor wants to ban diesel vehicles by 2020.

Hulot’s plan would cover the whole country and also target petrol cars, but it could face resistance from manufacturers and drivers. He proposed aid for poorer families to buy cleaner vehicles.

The maker of Peugeot and Citroen cars, PSA Group, said the environment minister’s pledge fits with its goal of offering hybrid or electric versions of 80 per cent of its cars by 2023.

But even if France eventually bans sales of diesel and petrol vehicles, PSA spokeswoman Laure de Servigny said the company will continue making such cars for foreign markets.

“We are a global player,” she said. “You have to take into account the situation globally.”

What are your thoughts?

Will my cracked, chipped or damaged windscreen fail an MOT?

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My windscreen has damage on it, will it fail an MOT?

Your car’s windscreen is a vital part of your car and it does a lot more than keep the flies off your teeth, it maintains a good vision of the road ahead.

Image result for windscreen cracks

Vision

We have all been there, smeary wipers, low sun, and dead flies all reducing your visibiliy.  There are a few simple things that you can do to improve vision a lot by making sure that your windscreen is clean, inside and outside.

  • Even if you’re not a smoker a hazy film will build up on the inside of the glass, in newer cars, this is worse as the plastics in the car give off a residue.
  • If you have a scratches, abrasions or a chips on the outside this can makethe  dazzle from the sun even worse.
  • If you notice your swiper baldes are not clearing properly, then new ones are a simple and cost effective fix, many suppliers will also fit them for free of a small charge.  It is worth keeping an eye on the condition of these, over time the rubber can harden and reduce the ability to wipe the screen.
  • Use plenty of screen wash, in the summer use 20% wash to water, then in the winter, consider increasing this to 50%, this will help clear the salt off the screen and also reduce the risk of freezing.

Cracks or Chips

Depending on its size and position, a chip on your windscreen can be a distraction or even impair vision.

Damage of up to 40mm across can sometimes be repaired, depending on where in the screen it is situated.

  • If the damage is right in front of you – in the area known as the ‘A zone’ – only damage up to 10mm (slightly less than the size of a 5 pence coin) can be repaired
  • Repair involves cleaning and drying the damaged area and filling it with a clear resin with similar optical properties to glass, you will see an image below showing a repair.
  • The damage won’t completely disappear but the repaired area will be much less visible and have a smooth surface
  • If ignored, small chips can grow and become irreparable. Secondary cracks can form through the combined effect of heat, moisture, frost, dirt and vibration
  • Any dirt or moisture getting into the chip will make it more difficult to produce a visually acceptable repair so it’s important to act quickly
Image result for windscreen cracks resin repair
The MOT test

Depending on where it’s located, some windscreen damage will result in an MOT failure if not attended to.

The screen’s divided into two areas for the MOT.

  • Damage larger than 10mm across will normally result in a failure if it’s in the ‘A-zone’, a 290mm wide band centred on the steering column and bounded top and bottom by the windscreen wiper swept area
  • Damage larger than 40mm across will normally result in failure anywhere else on the windscreen
Image result for windscreen cracks
Windscreen wipers

Your car can fail the MOT if a wiper blade is insecure, missing, or in such a condition that it doesn’t clear the windscreen effectively to give you an adequate view of the road (through the windscreen) to the left and right sides of the vehicle, as well as to the front.

Wipers that judder, make a noise, leave bands of rain or unwashed margins should be replaced.

 

What are the new rules on Speeding in the UK? New fines and point system from April 2017

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The Government has decided to introduce tougher penalties for the most serious speeding offences, following statistics that indicate that the number of speeding offences has risen by 44% over the last five years. The new penalties came into force on 24 April 2017 in England and Wales (note that Scotland is excluded), and mean that offending drivers will now pay a fine based on a percentage of their weekly income, decided by the severity of the offence.

 WHAT DO THE NEW RULES MEAN FOR DRIVERS?

For fixed penalty notices, there are no changes, with a £100 fine and three penalty points. However, for those drivers summoned to court for speeding offences the penalties are changing. Previously, drivers faced fines of up to 100% of their weekly income, with a minimum fine of £100 and three penalty points. Following the changes, fines will now be split into bandings, with Band C fines costing the worst offenders up to 175% of their weekly income. Drivers may also risk being banned from the roads for up to 56 days, or alternatively could receive six points on their licence.

The maximum fines will remain the same, with offenders being fined up to £1000, or £2500 if the offence takes place on a motorway. As noted earlier, the minimum fine of £100 and three penalty points also remains unchanged.

First time offenders may avoid the increased penalties if they take a speed awareness course, however this is not available for repeat offenders or for more serious speeding offences.

 

As a result of the changes, here are some worked examples of the new fine structure. All figures are based on the UK’s average salary of £27,600 (as stated by the Office of National Statistics):

Speeding Fine changes in April 2017 – up to 150% of weekly wage.

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What happens if you get caught Speeding now?

From April 2017 the rules around speeding and the fines/penalties issued are changing.  The fines issued will be linked to your weekly wage, so the faster you go and the more you earn, the greater the penalty.

What happens if you get caught driving between 31 to 40 MPH in a 30 MPH Zone? – You are likely to get a fine of 50% of your weekly income and three points on your licence.

What happens if you get caught driving between 41 to 50 MPH in a 30 MPH Zone? – You are likely to get a fine of 100% of your weekly income and 4 to 6 points on your licence or a disqualification of between 7 and 28 days.

What happens if you get caught driving between 51 or above in a 30 MPH Zone? – You are likely to get a fine of 150% of your weekly income and 6 points on your licence or a disqualification of between 7 and 56 days.

What is a 30 MPH Zone?

This is a built up area in which the speed limit is automatically set at 30 MPH, these roads are restricted roads and are identified easily as they will have street lights.  Another definition is ‘unless an order has been made and the road is signed to the contrary, a 30 mph speed limit applies where there are three or more lamps throwing light on the carriageway and placed not more than 183 metres apart.

What happens if I get caught speeding in a leased car or van?

The majority of leased cars or vans are not registered in your own name.  If you have a car or van on a personal or business contract, that is owned by a vehicle finance, hire or leasing company then any speeding notifications will be sent to them first, then they process the paperwork and then send this on to you with a charge, normally about £35-50+VAT.

So, be a good driver, keep safe and within the speed limits and avoid the costs!

 

Land Rover & Range Rover factory order lead time update.

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How long will it take to factory order a New Land Rover or Range Rover model?

If you are looking to factory order a new Land Rover to your own specification with DSG Auto Contracts, then this is an idea of the latest factory lead times, they are typical examples of what you can expect to wait.

If you would like a business or personal contract hire, lease or purchase quote on a new Land Rover then please get in touch here.

Click here for a list of all of our latest car leasing deals on new Land Rover models.

Land Rover Model Derivative Exxpected Delivery  month  
All-New Discovery 2.0 Sd4 derivatives July 17 (subject to constraints)
3.0 Td6 derivatives August 17 (subject to constraints)
3.0 Si6 Supercharged Petrol derivatives September 17
Discovery Sport 2.0 Diesel 150PS June 17
2.0 Diesel 180PS Manual June 17
2.0 Diesel 180PS Auto July 17
RR Evoque Auto derivatives except Convertible July 17
Manual derivatives except eD4 June 17
Petrol Convertible June 17
Diesel Convertible June 17
eD4 5 Door July 17
eD4 Coupe July 17
Petrol derivatives July 17
RR Sport 3.0 V6 Diesel July 17
4.4 SDV8 Diesel June 17
V8 Supercharged AB & SVR August 17
3.0 S/C V6 Petrol August 17
2.0 SD4 HSE June 17
Hybrid derivatives Subject to separate comms
Range Rover SDV8 SWB July 17
SDV8 LWB July 17
All TDV6 derivatives August 17
Supercharged August 17
Supercharged LWB September 17
SVAutobiography & SVAutobiography Dynamic September 17
Hybrid derivatives Subject to separate communication

For more info on any of the above simply call the office on 0161 406 3936.