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I've been harping on for some time now about the need for changes to the lower end of BIK bands in order to better incentivise drivers into lower-emission cars, especially when the BIK rises gather pace in the coming years as the Government seeks to milk company car drivers for more and more money.
This story details the three consultations that HMRC has launched, and the one regarding BIK for sub-75g/km cars makes sensible suggestions.
I'd prefer a graded system in one-band increments, like there is above 95g/km, so there is greater incentive for brands to push into the next band, and likewise greater incentive for drivers to pick a plug-in that is slightly more efficient than another. It's a system that has worked well for pushing CO2 down for regular internal combustion engine models, but the broad bands of 1-50g/km and 51-75g/km provide little incentive to choose a 25g/km rather than a 49g/km model, for example.
The salary sacrifice consultation is set to be more controversial, with Tusker and Leaseplan already defending car salary sacrifice as revenue-positive for the Treasury and helping those that couldn't otherwise afford a new car to get one that is safer and more efficient than the one they would otherwise have picked.
It's unclear from the consultation whether car salary sacrifice is being deliberately targeted or caught up in the desire to limit things like gym membership and private healthcare that the Government is targeting from a loss-of-revenue point of view.
I suspect it's the former, but we'll have to wait and see whether the financial goals override the fact that there is clear evidence of sal-sac taking people out of older, less safe and higher-polluting cars and into new ones.
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