BusinessCompany NewsPBR: Stealth tax reappears for environmental diesels

PBR: Stealth tax reappears for environmental diesels

Another stealth tax on users of company cars has been announced in the pre-Budget report that could add 3% onto the costs of those using diesel.

Away from the glamour of chancellor Gordon Brown’s speech, which focused heavily on environmental issues, the treasury revealed that it would be withdrawing the waiver of a 3% diesel supplement for environmentally friendly diesel company cars.

From 6 April 2006, this waiver is being stopped for diesel cars that meet Euro IV emission standards, which are targeted at reducing environmentally damaging emissions, such as carbon monoxide, from engines.

The waiver had originally been introduced to encourage early take up of the technology by company car users. However, the standards stated by Euro IV will become mandatory for all new diesel cars registered from 1 January 2006.

The government therefore has argued that the waiver is no longer necessary. The waiver will, however, be retained for the life of company cars that meet the standard and were registered before 1 January 2006.

‘Many employers have over recent years significantly revised their company car policies to encourage employees into diesel cars,’ said Alistair Kendrick, a director at Ernst & Young.

‘The chancellor’s announcement will now leave employers red-faced, having structure deals around diesel cars, and having to consider if such a policy should apply post-2006.’

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

3m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

7m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

7m Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

10m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

10m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

10m Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

10m Emma Smith, Managing Editor
Mazars strengthens audit team with partner appointment

Accounting Firms Mazars strengthens audit team with partner appointment

10m Emma Smith, Managing Editor