EMPLOYERS risk increasing their company car drivers' tax bills by fitting so-called 'black box' technology in a bid to cut fleet costs.

If an accessory is fitted after a car is registered and costs more than £100, its value is added to the taxable benefit of the vehicle. Such charges could provoke a staff revolt when companies attempt to fit the technology to monitor the movement and use of vehicles.

VELO has joined forces with Ernst & Young, to call on the Government to kill off the benefit-in-kind tax liability of any vehicle tracking system.

Alastair Kendrick, director of PAYE/NI solutions for Ernst & Young, said: 'The Inland Revenue views 'black boxes' as an optional accessory and defines accessory as 'equipment not defined as standard'. Surely 'black boxes', which provide vital vehicle management information that could help reduce car theft and the amount of accidents on the road, should be considered an exception as well.'