TaxPersonal TaxMotorists baffled by car tax changes

Motorists baffled by car tax changes

Nearly half a million business motorists appear to know nothing about the changes to company car taxes according to a recent survey by fleet finance company Alphabet.

Almost half of those questioned said they did not understand the tax changes while almost two-thirds had received no advice from their employers on the matter.

Choosing the ‘wrong’ company car could cost motorists hundreds or even thousands of pounds in extra taxes when the changes come into effect in April next year.

Mike Baldry, chief operating officer at Alphabet said the government’s strategy of using taxes to change attitudes was having some effect, but he warned of ‘unnecessary’ expenses if the current lack of awareness continued.

Roughly 300,000 drivers said they might try to change their existing car for a ‘greener’ one midway through its fleet life.

But four out of five fleet managers said they saw next year’s change to company car tax rules as the latest blow in a series of driving tax increases, with most believing the change will make them worse off.

Links

Alphabet website

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