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OsbourneThis week’s Chancellors budget was built as one that supports businesses and investment. We are pleased to see that the annual investment allowance was increased and extended to help businesses invest, however we feel they could have gone further and extended the allowance beyond 2015.

It was announced that the government is building on the success of the Apprenticeship Grants for Employers (AGE) scheme, by providing an extra £85 million in both 2014-15 and 2015-16 for over 100,000 grants to employers. Also announced was £20m for post graduate apprentice training. This will be a positive initiative for the retail motor sector.

For consumers, measures such as reducing duties on beer and freezing fuel duty in addition to increasing income tax personal allowances will give consumers more disposable income to spend on discretionary good such as cars.

NFDA Budget Comment

Sue Robinson, NFDA Director


The Chancellor confirmed that Corporation tax from 1 April 2014 will be 21% and will fall to 20% in April 2015 – a move which will be welcomes by businesses across the UK.


VED rates for cars, motorcycles and main rates for vans will increase by RPI from 1 April 2014.

The Chancellor confirmed that the paper tax disc will be withdrawn in October 2014 and car owners will have the additional payment choice of VED for direct debit.


The Government has announced it will extend the allowance to £500,000 until April 2015.


An increase in company car tax bands and also the removal of diesel supplements for benefiting in kind tax.

Fuel benefit will rise by RPI from April 2015. A further measure is for employees to be taxed on employer leased vehicles as company car tax rather than personal tax.


Van benefit in kind tax will increase by RPI. It was also announced that there was to be a restructuring for some HGV’s.



Posted by Sue Robinson on 21/03/2014