• In spite of 2.5% higher VAT rate on vehicle purchases from 4^th January 2011, price reductions abound for much of Renault range, up to £2,000
• Many list prices of best-selling versions lower than October 2010 revised P11D prices leading to reduced National Insurance contribution costs for fleet operators and lower Benefit-In-Kind tax for business drivers 

Energy and train prices might be rising, but in light of Renault reducing prices on many of its best-selling models in early 2011, in spite of the increased VAT rate, business car drivers and fleet operators can look forward to reaping the financial rewards in the New Year. 

Following the recent simplification of its car range, Renault has announced key model pricing with effect from 4^th January 2011, including the new 20% VAT rate. The welcome news for both employers and business drivers, is that many of the best-sellers will be the same price, or in many cases, substantially less than today, by up to £2,000. As a result, the revised P11D prices will benefit employers through lower National Insurance contribution costs, while business drivers can enjoy reduced Benefit-In-Kind taxation. 

In keeping with many a New Year’s weight-loss resolution, albeit probably more successfully, the pounds have fallen off much of the Renault line-up. It’s not just prices which have fallen though. So have emissions, with a positive impact on tax liability, for the driver as well as the fleet operator. 

Some of the big winners, or perhaps more aptly, ‘losers’, compared to October 2010 prices are many of its best-selling versions, with significant company car benefits. Among several key examples, the Mégane Sport Tourer Dynamique TomTom dCi 110 sees a P11D reduction of £975, a 5% improvement overall. 

Moving up the product range, the Laguna Hatch Dynamique TomTom dCi 150 sees a P11D reduction of £1,415, with an NI reduction of £117 over three years and BIK down by £340 (based on 40% taxpayer rate). Lastly, the P11D of Espace Dynamique TomTom dCi 150 falls by £2,430, while its NI saving over three years is £621 and BIK down by an impressive £1,799. 

The new dCi 110 ‘ECO’ version of Megane Sport Tourer now boasts CO₂ emissions of 106 grams instead of the former 114. As a result of its lower P11D value, there is already a National Insurance saving over three years of £59, plus its BIK is down by £172 for a higher-rate taxpayer. Separately, now under the crucial emissions threshold of 110 grams, it is eligible for 100% write-down allowance on capital expenditure. 

As a further example, Laguna Hatch Dynamique TomTom dCi 110 sees its P11D fall by £275, but even more impressively, with a CO₂ reduction from 130 grams to 120, its BIK rating drops from 18% to 13%, giving an overall annual saving for drivers of £420. For employers, this also equates to an annual National Insurance contribution saving of £135, from £468 down to £333. 

In terms of solely list price reductions, the table below outlines some of the key alterations for January 2011 best-sellers: 

 The lower prices are not the only thing which are likely to put a smile on cash-strapped buyers faces in January, as on several models, Renault has also increased equipment specification at no extra cost. As a prime example of the added value, the svelte Laguna Coupé GT Line TomTom now boasts fully-integrated Carminat TomTom satellite navigation as standard, previously a £460 option, despite the £1,970 price cut for the dCi 180 version. 

Commenting on its car range price reductions for 2011, together with the company’s other recent improvements, Darren Payne, Renault UK’s Director of Fleet and LCV Operations, said, "With the raft of enhancements we’ve made to our business customer services through the Renault Business Promise, our simplified car product range, the new more efficient and economical engines we are introducing and now our new lower list prices, we’re showing the fleet sector how 100% committed we are to driving down running costs.”