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Pre-Budget comments 2007
By Jim Salkeld

Jim Salkeld, Managing Director of Toomey Opticar, comments  on the following extract from the Pre-Budget Statement made by the Chancellor on Tuesday 9th October

“The Government recognises there are interactions between rates of company car tax (CCT), employee car ownership schemes (ECOS), tax-free mileage allowances (AMAPs), and tax relief on business cars, that work together to determine car purchase and usage choices.  The Government wants to ensure that the tax system properly reflects and supports business activity, in addition to promoting fairness and environmentally friendly travel.”

This is an important statement from HMG, and necessary to support the diversity of UK fleet.  It has clearly accepted that businesses and employees alike have a right to select the most appropriate and cost effective car benefit arrangement available within a legitimate taxation framework.  I am sure this will come as a welcome relief to businesses who have put their car policies on hold whilst the ECO review in particular was underway, and will enable more focus to be applied to key areas of fleet management such as suitability, safety and emissions.

Although a little disappointed that the AMAPs review has not produced any recommendations, I am not surprised given the complexity of the argument and the lack of material data.  Given these stated aims of fairness and environmental friendliness however, I would not expect to see any diminution of value in the rates themselves, but rather increased pressure on fuel costs such as illustrated with the increase in fuel scale to £16,900.

-ends-

Notes to the editor:

Boasting more than 15 years experience within the fleet & driver management sector, James Salkeld can supply expert comment on a full range of fleet and car benefit articles.

As the managing director of Toomey Opticar, James is able to provide a unique insight into how a mixed approach to fleets can benefit companies and employees. James can demonstrate how by tailoring an approach and offering both company car schemes and employee car ownership schemes, companies and employees can maximise their tax benefits and minimise costs. Thus, James is also an expert on all tax issues relating to company cars.

Following a career in leading financial and IT institutions, James formed OptiMarque in 1994 after realising a gap existed in the market advising companies and company car drivers whether to opt out of their scheme in order to gain tax benefits. The original software was created to calculate the details of each specific driver and analyse whether a company car or opt out was most tax efficient. This then led to the development of software systems for employers to implement employee car ownership (ECO) schemes within strict HMRC rules. Following the success of several online ECO schemes, the company became part of the Toomey Group and the Optifleet system was developed to enable employers and employees to select and run the best and least cost option within a wide range of choices.

This fully managed mixed fleet solution has been successfully trialled with a major client over the past 12 months, and is now being launched to a wider audience. Optifleet is a complete online fleet and driver management system for maximising car benefit to employees in a mixed-fleet environment with minimal administration. It represents the ultimate in tax-efficient car schemes.

Toomey Opticar Limited is a wholly owned subsidiary of Laindon Holdings Limited, and a member of the Toomey Group. 

Photographs are available.

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