HRUX – Latest News

HRUX produces articles and reports on a number of issues and these can all be found here.

OUR LATEST POST

Are company cars are the problem?

Are company cars are the problem?

Who looks at the picture above and thinks “company cars are the problem”?

HM Government’s focus seems to be in driving all ICE company cars off the road. The scale charge for 1 litre petrol Renault Clio is an unbelievable 24% (25% next year) which means an employee’s effective tax rate on the company car benefit could exceed 100%.

We’ve seen 150 thousand company cars drivers opt out in just the last two years – and anecdotally we all know someone who’s taken the cash and bought a petrol SUV with CO2 emissions often 50% higher.

We totally agree that the future is electric (although arguably we’re one episode of Panorama away from an uncomfortable debate around some of the materials in those batteries). But the stark reality is that the supply at the right price just isn’t there and probably won’t be for a couple of years yet, and many high mileage drivers therefore have no choice but to pay 100%+ effective tax rates on what amount to essential need cars.

We’d like to see a max company car scale rate of 15% for ALL cars (petrol and RDE2 diesel) that get under 105g/km of CO2 under WLTP. Do you agree? Let us know…

PREVIOUS POSTS

Are company cars are the problem?

Are company cars are the problem?

Who looks at the picture above and thinks “company cars are the problem”? HM Government’s focus seems to be in driving all ICE company cars off the road. The scale charge for 1 litre petrol Renault Clio is an unbelievable 24% (25% next year) which means an employee’s...

read more
Threading the eye of the needle in the haystack

Threading the eye of the needle in the haystack

You’ve 15,000 employees and there are 26 of them that need to do something today, or it’s going to cost you money.   What do you do?   How do you identify them?   Do you call them?   Or maybe you should email all 15,000 just to be safe?  ...

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White lists or white noise?

White lists or white noise?

Based on numerous conversations with senior HR folk it’s very clear that communication with employees is a major issue. Everyone accepts that employee engagement is a key business issue, and every company seeks to improve it in dozens of different ways. Every pitch...

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Travis Perkins & eSparx

Travis Perkins & eSparx

There’s a quiet revolution going on at one of our longest standing clients, Travis Perkins. Last March they went live with our award-nominated esparx HR comms system, and with each passing week they are automating and improving more of their processes and messaging to...

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The Cobalt Conundrum

The Cobalt Conundrum

You might reasonably argue that the case for electric vehicles is overwhelming. Trust me – 10/15 years from now you’ll pass a petrol station and think “wow, haven’t seen one of those in ages”. So why haven’t we all already got an electric car? There are huge tax...

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Is company car tax is too high?

Is company car tax is too high?

We are constantly telling our clients that traditional company cars are, in many ways, the optimum solution for employees with significant business mileage. And yet the number of company cars on the road is falling, and fast. People who have no choice but to sit in a...

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What difference does 3 miles make?

What difference does 3 miles make?

What difference does 3 miles make? About £60 a month? The (brilliant) BMW 330e PHEV (SE) was listed at 41 electric range on the BMW website - except now it seems to say 38? We keep pointing this out - but these ranges are really important for company car tax. Register...

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A new benchmark?

A new benchmark?

I had a quick drive in a Tesla 3 and I was simply blown away. I had my reservations beforehand, not helped by the quality of a pre production car I’d sat in previously.... The drivetrain was simply amazing. Acceleration defies belief. And - in contrast to the Tesla X...

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New company car tax rules

New company car tax rules

There was an understandable degree of excitement when HMG announced the new company car tax rules yesterday. However, arguably the changes amount to little more than moving the deck chairs. We believe the biggest news is that the CO2 scale charge escalator has finally...

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P11D Correct Data

P11D Correct Data

HMRC have published today the P11D (corrected) data up to 2016/17 and provisionally for 2017/18. As usual we've updated our slide for you and this is below. The key to note is that the total number of company cars fell from 940k in 2016/17 to 890k in 2017/18, but the...

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ICFM Annual Conference

ICFM Annual Conference

It was a huge pleasure and my privilege to address the #ICFM Annual Conference in Wembley on Tuesday this week. Slightly depressing subject though - company car tax. The two speakers before me talked all things green. I was struck that our company car system really...

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Anabella and Brenda

I want to talk about two company car tax drivers, let’s call them Anabella and Brenda. It's April 2020. Anabella works in London for a PE house – she’s got a Porsche Taycan, List Price £120,000. She only does 8,000 miles a year, all private, mostly to the station in...

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New PHEVs are coming

Apparently a 34% fall in PHEV sales is the fault of HMG’s decision to remove the grant? I have to say I think that’s unlikely to be the full story? This time last year there were a number of decent PHEVs available – the Golf and Passat GTE, Audi A3 etron, BMW 330e,...

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Yes the future IS electric

Yes the future IS electric

It appears around a million Europeans bought petrol cars rather than diesels in 2018. HRUX’s own sums suggest that, over their lifetimes, those cars will emit nearly 3 million tonnes or more CO2 than the diesels Europeans were buying. Is that a lot? Does that matter?...

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A Real Conversation with a Mini Dealer

A Real Conversation with a Mini Dealer

“So what’s the electric only range on the PHEV?” “There’s no electric mini yet. We only have the Countryman which is a hybrid; like the big one over there in the corner” “Cool, but what’s the electric only range on it?” “We only have the Countryman with an electric...

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Company Car Tax 2019

Company Car Tax 2019

I’m reviewing a car fleet for a client – and I’m looking at a Jaguar XE 2.0d where the CO2 has increased from 99g under NEDC to a new figure of 128. I've checked it twice – and that’s the movement – 29g/km. The company car tax for 2018/19 will now be based on 6% more...

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Fleet Review Process

Fleet Review Process

30,000 business miles a year - which makes more sense: Skoda Superb Estate or a Nissan Navara pick-up? No I’ve not driven either. And yes, I too fancy the full size “Tonka Toy” Navara. BUT 30,000 miles a year in a pick-up?! I’ve just completed a fleet review for a...

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Total Tax and NI Take on Private Fuel

Total Tax and NI Take on Private Fuel

Been writing for a while now on my frustrations with high company car taxes. But why are they so high? Is HMG being very clever or extremely foolish? Interesting to look at taxes on private fuel in a company car - here’s one the Government did earlier.... The graph...

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HMRC tax take from company cars

HMRC tax take from company cars

Having spent some time at the Fleet Management Live show over the last 2 days and seen the focus on electric vehicles I was wondering on the impact that the new tax rules would have? The Government currently receives ~£2bn p.a. in company car tax and Class1A NIC. This...

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Can I Let You Into a Little Secret?

Can I Let You Into a Little Secret?

Can I let you into a little secret? Most of the LinkedIn posts I write get rejected by my partners for being too ranty! I know! Me? Ranty?! It may not surprise you therefore to hear that I’ve had a couple of potential posts rejected these last couple of days about the...

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UK Gov gets blood from stone!

UK Gov gets blood from stone!

UK Gov gets blood from stone! The graph shows the total tax and NIC take from private fuel scale charge compared to the number of employees “enjoying” the benefit (the red line). The Exchequer has kept the tax and NIC above £300m per annum whilst the total number of...

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Biggest P11D concerns for 2017/18

Biggest P11D concerns for 2017/18

Some 3.8 million individuals are expected to receive at least one P11D reportable taxable benefit in 2016/17; equating to over £3bn and £1.2bn in tax and NIC respectively. We’ve asked our clients what their biggest concerns were for the coming 2017/18 season. In...

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FIVE Facts About P11Ds

FIVE Facts About P11Ds

Tax and employee benefits; FIVE things you might not have known! At £250bn (2015/26) PAYE represents approx. 50% of the UK’s total tax take, and its climbing. £3.9bn of this comes from forms P11D (up 5% on 2014/15). For comparison Inheritance Tax was only £5.1bn. So...

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