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YOUNG AT HEART: Avoiding, not evading tax

Date: 24 February 2009

Tristan Young is Editor-in-chief of BusinessCar

The new salary-sacrifice car scheme by Deloitte is very clever (see www.businesscar.co.uk/news), but what's interesting is the fact that company cars (if you opt for the right one) are now a way of paying less tax not more.

Of course, company cars were first introduced to reward staff without increasing salary and so keep tax bills to a minimum, and ever since it's been a game of cat-and-mouse between the fleet industry and the Government, with new ways of avoiding tax countered by new taxations systems.

With this new All Employee scheme, Deloitte is neatly using the Government's low taxation on green cars to beat the system.

It looks like a great idea and one to watch if you're the right kind of fleet. I predict it will take the Government a while to catch-up.



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