The start point for the best source of fleet information |
Paul Barker's blog - 5 April: Treasury greed puts company cars in danger
Date: 05 April 2016 | Author:
I've been pushing this point since the Government decided company car BIK was an area ripe for exploitation over a year ago, but the Treasury actions on taxation of business cars is dangerously close to pushing people out of their efficient, safe and technologically advanced vehicles.
That's not just my opinion, but the carefully crafted and statistically backed view of the BVRLA, which released four policy papers last week, including one on business car taxation (see story left). This research found that each diesel company car driver will pay an additional £626.94 in 2017-18 for the benefit of their vehicle, rising to £882.26 in 2018-20.
The BVRLA described the current BIK regime as a "disincentive against the take-up or retention of company cars by employees", and warned that people could switch to personal contract hire or, "more likely, older, privately owned, higher-emission vehicles".
I understand that the Government was caught out by the speed at which car manufacturers were able to get lower-emission vehicles into the market, and therefore the reduced tax take, but this huge overcompensation is combined with a system that doesn't allow drivers to move down bands below 95g/km without switching to plug-in models that may not be appropriate for their needs.
There are socio-economic and environmental benefits to company cars that are being neglected in favour of the short-term raking in of more tax money. It's a thought process that is endangering a system that at present very successfully gets new cleaner, safer and technologically advanced vehicles on the road, into mainstream consciousness and into the used vehicle parc.
