The changes to company car tax for both the employer and employee that come into force over the next 5 years are ill thought out and will lead to increased emissions, the take up of tax avoidance schemes and reduced government income – not to mention having a negative impact on road safety.
There is already a ticking time bomb around grey fleet and this just makes the whole situation worse.
After over a decade of a fair system, the changes are not only badly thought out, but also disproportionate in terms of the increases for employers and drivers alike.
The decision is not only out of step with the rest of Europe but almost all of the developed economies of the world.
The impact of the changes will include
Increased CO2 and NOx emissions
Reduced tax income
Increased council and government cost of admin
Increased accident rates and the risk to the road using public
Reduced revenues for the UK motor industry and foreign investment in R & D
The UK economy relies heavily on the motor industry and significant changes to the tax regime can affect research into new fuels and electric vehicles, which we not only need for the economy, but the environment as well.
It makes the electric and hybrid option (which is cleaner) less of an incentive and could drive many towards using commercial vehicles, which are less fuel efficient, higher on emissions and less safe.
The average employee is going to see around a 10% increase in their company car tax and employers between 8-16%.
While it is understandable to increase the tax rates on higher omitting vehicles, the blanket approach that has been adopted penalises everyone including those that have invested in greener vehicles.
The chancellor should take the opportunity in the next budget to fine tune the changes and focus more on the dirtier vehicles before we go too far down a path that could in effect lead to an increase in so many areas including road deaths and injuries.
This increase just does not make sense in particular in a time of such uncertainty after the Brexit vote. At a time when there is a focus on reducing admin and red tape for business, this will increase it.
Byron was professional and knowledgeable throughout and nothing was too much trouble. Can't speak highly or recommend him enough!
Thanks very much for the great friendly and informative service thus far. It's been a joy dealing with you, you've been clear and always willing to assist and clarify my queries. Making the car buying experience more relaxed and enjoyable.
Just a THANK YOU!
Truck delivered all as promised, communication excellent.
I dealt with Kieran , who was very helpful , answered all my questions and made the process a smooth one!
Thank you for an excellent service. Everything was great and spot on.
What a service, Stuart and Natasha are superb. Can't recommend these guys enough.
Thank you for sorting out the new van! It drives like a ferrari!
Hi Emma, just want to thank you for everything you did sorting out our new cars, we took delivery today and there great. The whole thing from 1st speaking to you on the phone 6 weeks ago has gone brilliantly without fuss, great communication from everyone involved along the way. I will definitely recommend Total Motion to friends and hopefully being getting in touch myself in 3 years to go through it again with new vehicles. Many thanks again, Lee
Thank you for a quick and easy order process. Sorted out in a day. My wife is very much looking forward to her new car.
This is my first time leasing a vehicle and Stuart has been absolutely fantastic in explaining and sourcing the best deal for my first car. Any question I've asked or change that I've asked for (within reason), Stuart has sorted professionally and quickly. The communication via the company is brilliant and the whole ordering process is simple and easy. I'm looking forward to receiving my car and would definitely recommend Total Motion to anyone. Stuart Conway deserves personal recognition from the company for his excellent service.
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