Optimarque, at Luton, has developed a computer programme that ‘sees’ ahead to 2004-5. It calculates precisely how forthcoming carbon dioxide (CO2) exhaust emission benefit-in-kind taxes and all other relevant cash liabilities will individually affect a company’s fleet car budget and each employee driver year by year.
It shows how and why it is prudent to select the ‘right’ company or opt-out car now to avoid tax shocks ahead.
Britain’s 2.4 million company car drivers’ circumstances differ, even those on identical pay and vehicles.
CO2-based graduated ‘road tax’ starts next year and is predicted to soar from its current £100-£155 to £350-£450 on mid-range cars and to £900 or £1,000-a-year on top executive models by 2004.
It is expected to rise from 2002 forcing fleet operators to review whole-life car costs.
CO2 based company car ‘benefit’ tax, starting in 2002 and ratcheted up year by year until 2005, holds pleasing surprises for ‘perk’ car drivers, yet alarming shocks for high mileage essential work-car drivers.
They face a tax commitment of up to £6,000-a-year now, soaring to £14,000 in 2004. Accurate to a penny, the software, called Optifleet, can tell each company car driver whether taking a car or cash is more beneficial.
It can indicate to an employer which cars to make available for maximum life-on-fleet cost efficiency according to need.
The programme simplifies car selection by any permutation of C02, price, make, model, engine size, specification plus optional extras, petrol, diesel, bi-fuel, mpg, employer-employee requirements, running cost, work and-or private mileage, personal circumstances and tax liabilities.
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