Fleet News

Fleets cut safety to save tax

COMPANY car drivers are rejecting optional safety and security devices to cut their tax bills, according to fleet management company VELO. Managing director David Voss says the problem relates to a benefit in kind tax change introduced in April 1994 which provided for the taxing of car accessories worth more than £100 - and he wants Chancellor Kenneth Clarke to review the system.

Voss said: 'If, as part of a risk management programme, a company adopted a policy of having certain safety and security features fitted to its cars, its employees currently have no choice but to pay the extra tax - which seems unfair. This means that important features such as airbags, ABS systems, alarms and immobilisers are less likely to be fitted to company cars. Driver training - another important safety feature - is not taxed as a benefit, so why ABS brakes or airbags?

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