What the Spring Budget 2017 Means for Car Dealers and Garages
8th March 2017
Dealer Management System and Car Dealer Website provider Dragon2000 have analysed today’s budget from a dealership perspective, and compiled a comprehensive guide for Car Dealers and Garages explaining how the Spring Budget affects their businesses, their dealership staff and their customers.
Direct effects on your business
Car dealers and garage businesses will see corporation tax cuts and a reduction in company owners’ dividend tax-free allowance. Standard rate Insurance Premium tax is set to rise in June, as stated in last year’s Autumn Statement.
The government has also pledged investment in full-fibre broadband and the new lightning fast 5G mobile network, which will be good news for dealers in more rural areas or those that struggle with mobile connectivity.
Dealers may find themselves either winners or losers in the business rates revaluation in April 2017, depending on their location and the rise or fall of property prices between 2008 and 2015.
Read the business related items using the links below:
Effects on your dealership staff
Your staff will be able to hang on to more of the money they earn as the personal allowance continues to rise, with the government reporting that the amount your staff can earn tax free from this April will be over 75% higher than seven years ago.
The new tax-free childcare scheme is being rolled out during 2017, and will benefit a lot of working parents employed in dealership roles. Dealers should be aware though that if their staff switch from a childcare voucher, or a directly contracted childcare scheme the dealer provides, the employee cannot continue to receive childcare vouchers – even if this means amending a salary sacrifice arrangement.
There is also set to be a government consultation on making the taxation less complicated and fairer on employee expenses and benefits in kind.
Read the dealership staff related items using the links below:
Effects on your customers
In addition to the new car VED rate shake-up coming into force next month for vehicles registered after April 1st, VED rates for already registered vehicles are also set to rise, though heavy goods vehicles will benefit from a VED freeze.
Fuel duty is frozen again for the seventh time as announced in the 2016 Autumn Statement, and the government is consulting on how the UK’s air quality targets will be met – including the tax treatment of diesel vehicles. Funds have now been allocated to local projects to ease congestion in major traffic trouble spots, with announcements of individual regional schemes to be detailed by the Department of Transport shortly.
There will also be consultation on further protecting consumer rights by making terms and conditions clearer, which could well have an effect on finance and insurance products for dealers.
Read the consumer related items using the links below: