Fleet News

Business-mile tax breaks under attack

THE first report from the House of Commons Select Committee on Environmental Audit has called for an immediate change to company car taxation. Business mile tax breaks for company car drivers are right in the report's firing line, following a submission to the committee from Friends of the Earth.

The FoE report said: 'I to find a better example of where the tax system does exactly the opposite to the Government's aims of sending clear signals about which economic activities it wishes to encourage.' As a result, the committee recommended that the Government should address the incentives in the taxation of company cars as part of its integrated transport policy. It also suggested the Government should investigate the impact of introducing differentials to vehicle excise duty rates, based not only on a car's engine size and fuel efficiency, but also its emission standards for regulated pollutants and for carbon dioxide.

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment


No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee