Lamont's tax boos
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BUDGET '92 • Chancellor Norman Lamont has frozen vehicle excise duty (YE 1)) for trucks and increased dery duty in line with inflation in what he called a "Budget for the recovery".
The Government says that the freeze in truck rates together with the indexation of duty on diesel will lower the overall tax burden on hauliers by 1% next year.
However. VED for light vans goes up from £100 to £110, and three new categories of VII) have been introduced for trucks which become legal from 1 January 1993. The new VED rates will be £2,260 for 26tonne three-axle rigids, £4,250 for 32-tonne four-axle rigids and £5,000 for 35-tonne fouraxle artics.
The increase in fuel duty will add 0.9p/litre on bulk diesel, which works out at 31p/lit based on this week's prices, says fuel analyst Oil Price Assessment.
The inheritance tax threshold increases to £150,000, which will help many small, family-owned haulage companies.
Another move which is sure to benefit small hauliers working for large companies is that firms will now have to publicly state their payment terms.
The Government will introduce simpler procedures for debt recovery, and from next month firms which win Government contracts will have to include a clause stating that they will pay their subcontrao tors within 30 days of receipt oi invoice.
The VAT threshold for small companies increases to £36,00( —a rise of £1,600.
The Uniform Business Rat€ in England and Wales goes tlf in line with inflation.