TaxCorporate TaxCompany car tax scheme to be targeted in Budget

Company car tax scheme to be targeted in Budget

Scheme intended to create greener car use has created a tax loophole, says government

Changes to car fleet tax rules could emerge during the Budget, over
government concerns that a green car scheme has created a tax loophole.

The government is concerned that ECOS, an
employee car
ownership scheme
, has allowed business to circumvent penalties for
driving high carbon emission cars.

Employees are paid 40p per mile by their employer tax-free, for up to 10,000
miles, which had been argued did not discourage people out of bigger cars.

Further Reading:

Fleet special: emission possible

Insider Business Club: fleet – green light

Fleet: environment – costing the Earth?

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