Volvo has invested in training to help its fleet managers decipher the complex tax rules surrounding company car funding.
Volvo Car UK warned businesses not to fall into the trap of assessing a company car’s tax on its monthly rental alone and claimed tax breaks are biased towards lower emitting vehicles such as those in its DRIVe range.
The carmaker has launched a training scheme for its corporate sales team and business centre dealers to help companies clear up confusion surrounding corporation tax advantages, lease disallowance and approved mileage allowance payments.
Hampshire-based BCF Wessex is delivering the tax-efficient training programme, which is being rolled out to Volvo’s 24 dealership-based business centres in the UK.
The brand is urging fleet managers, user choosers and small and medium sized companies to attend for funding advice.
Volvo‘s national corporate operations manager, Selwyn Cooper said: “The tax rules are complicated and, depending on a customer’s personal situation, play a great part in determining whether they would be better off driving a company car or buying the car privately.”
Corporation tax rules are weighted in favour of low CO2 cars. When a company purchases sub 111g/km models it can claim a 100% first year allowance rather than spreading its capital allowance over several years.
Volvo claimed companies can get £4000 more tax relief on sub-111g/km cars than on higher emission models.
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