Fleet News

Car price cuts won't automatically reduce drivers' benefit-in-kind tax bills

FLEET drivers' expectations of lower benefit-in-kind tax bills could be dashed because of the way manufacturers approach price cuts. HSBC Vehicle Finance managing director Tim Holmes warned that although special offers were pushing down prices for private buyers, list prices could go relatively unaffected.

The result is that fleet drivers are paying tax based on a list price that bears no relation to the price of the car they are actually driving and Holmes said he was disappointed the Government did not abolish list prices altogether, meaning company car drivers were taxed on the 'true' value of their vehicles.

He said: 'Discounts may continue, but with list prices remaining, drivers will not see very much difference to their tax bills. While the private driver has benefited from the Competition Commission's inquiry, the fleet driver has not.'

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