Drivers face £30 a month extra tax timebomb
An estimated 1.7 million company car drivers could suddenly be faced withpaying £30 a month more in tax on 6 April, when the new CO2 emissions based company car tax comes into force.
According to HSBC’s vehicle finance arm, which has produced a number of factsheets on the new tax.
The current company car tax system is structured around mileage-relatedbands, but from next month all stops. Instead, a car will be taxed on itscarbon dioxide emissions, measured in grams per kilometre, based on apercentage of its list price for tax purposes (P11D value).
For the vast majority of drivers – those covering between 2,500- 17,999miles per year – the new laws will bring tax savings, but for drivers of larger and petrol-fuelled cars, the cost may grow by up to £30.