It's seldom been a busier time for those charged with operating their company car and van fleets. In this latest edition of Proactive we round up the latest position on a number of tax changes that fleet managers need to be on top of, including the Expensive Car Supplement, new double cab pick-ups being taxed as company cars and brining VED tax into the EV world. There's also some great news around with the extension of charging grants for vans, workplaces, renters and flat owners, while we'll bring things back down to earth with some depressing pothole stats (remind your drivers to be aware!)
Tax Update: Clarification on Expensive Car Supplement for EVs and Double Cab Pick-up Tax Rules
Confused about when the Expensive Car Supplement applies to electric vehicles (EVs)? The BVRLA says that any new zero-emission cars registered before 1 April 2025 won’t have to pay the supplement (but they will pay VED tax on renewal), whereas any new EV registered on or after 1 April 2025 will pay the first year rate of VED, and if the list price is more than £40,000, the Expensive Car Supplement.
It is the first time that electric cars have been subject to the Expensive Car Supplement in a move that will impact leasing rates for somecars.
For more information on the expensive car supplement, read the latest guidance from the BVRLA
There are more tax changes on the way, too. New double cab pick-ups will be taxed as company cars from 6 April 2025. This means they will be subject to company car benefit-in-kind tax rates rather than the flat rate of £3,960 for commercial vehicles. For capital allowance purposes they will no longer be classed as ‘plant and machinery’ and instead will be subject to company car rates of between 6%, 18% and 100%, depending on the vehicle’s CO2 emissions.
Most, if not all, double cab pick-ups which can carry passengers are expected to come under the new rules. HMRC says that if a vehicle has four doors (whether they are hinged at the front or the rear), iti s a double cab pick-up so vehicles like the Toyota Hilux Extra Cab, which are known as extended, extra, king cabs or super cabs, will become subject to company car tax from April 2025.
HMRC has put a transitional period in place so if you have a double cab pick-up on your fleet or you order one before the new tax year you’ll benefit from the existing tax treatment until the earlier of disposal, lease expiry, or 5 April 2029.
Read more on the new rules from Fleet News here
More Government Funding for Electric Vans
The UK Government has pledged an additional £120 million to extend the Plug-in Van Grant for another year, as well as a number of other measures to bolster electric van adoption, including: removing additional training for large electric vans; allowing towing with large electric vans; expanded vehicle eligibility; and enhanced flexibility for disability-adapted vehicles.
Find out more about the Government measures on our website
There’s also some extra support for electric vehicle (EV) charging as both the Workplace Charging Scheme, which provides support for organisations towards the cost of installing up to 40 electric vehicle chargepoint sockets at their sites (capped at £350 per socket), and the Electric Vehicle Chargepoint Grant for renters or flat owners, have been extended for another year. The Government says this provides the certainty needed to continue rolling out charge points to flats, rental properties, schools, offices and workplaces.
Backlog of Pothole Repairs Reaches More Than 38,000
More than 38,000 potholes are still waiting to be fixed, according to a Freedom of Information Request by public sector insurer Zurich Municipal. The insurer itself saw a 19% increase in pothole-related claims in 2024, with March the most common month for motorists to report a pothole prang to their local council. The problem could be even worse this year due to the level of rainfall, which makes it harder for drivers to spot potholes and could mean costly repairs for fleets. The average cost for pothole damage last year, according to Zurich’s data, was about £600. So make sure your fleet drivers know how to report a pothole and what the process is if they damage a tyre.
Read more about the pothole repair backlog on Fleet News here
Electric Vehicle Myth-Busting for Fleets
Although there are more than 1.25 million electric vehicles (EVs) on the UK roads, there is still a significant amount of misinformation about them in the public domain so we thought it was time to set the record straight. In our latest guide, Electric Vehicle Myth-Busting for Fleets, we tackle common EV misconceptions, looking at whether electric vehicles really are more expensive than petrol and diesel models, if the UK’s public charging infrastructure is up to scratch, whether batteries and range are sufficient,what maintenance costs are like, and if this is going to be the breakthrough year for electric vans.
Download our EV myth busting guide here
...and finally
We had some delightful news when Broker News announced their finalists for the Broker News Awards 2025, making the shortlist for both of the categories we entered!
📈Best Mid-Sized Broker - testament to the work undertaken by everyone across our business to help us grow from a small to a mid-sized broker across the last 12-24 months
⚡Best Salary Sacrifice Broker - it's just over 2 years since we launched our EV salary sacrifice proposition, fast forward to today where it's now firmly established as a core product within the Gofor stable, complimentary to our wider fleet management solutions
A huge thank you to everyone in Team Gofor whose hard work has enabled us to have such strong stories to tell, and to all our partners and customers who've placed their trust in us over the last few years....and finally, a quick congratulations to all the finalists, look forward to seeing you all at the awards in April 🙌🥂🎉
That's it for the latest edition of Proactive - thanks for taking the time to read over!
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