Because of Inland Revenue benefit-in-kind tax rules, all diesels are charged a 3% company car tax supplement and only Euro IV vehicles are exempt, meaning there are large potential savings for employees in non-compliant vehicles who falsely claim they meet the requirement.
Members of the southern region of the Association of Car Fleet Operators heard Inland Revenue tax offices were carrying out rigorous checks to ensure drivers are not lying to save on taxes, but the checks are also making it difficult for drivers of bona-fide Euro IV diesels to get the discounts they are entitled to.
The problem is made more complicated because V5 registration documents do not state if the vehicle meets the vital environmental benchmark.
Instead, a Vehicle Certification Agency database, using data supplied by manufacturers, is the best source of clarification. But the meeting was told it might lead to errors in which Euro IV compliant diesels were incorrectly identified as Euro III. An ACFO spokesman told fleets: ‘If any driver has a just case, make sure you claim the discount and fight for it. The Inland Revenue is aware of the issue.’