Taxing time for the company car
News Feed From Norton Folgate
The Times’ Abigail Townsend talks to motor industry experts about the possible effects of a government clampdown on salary sacrifice schemes for company cars.
The scheme was introduced in 2002 to encourage the take-up of low-emission cars while the employee pays less income tax and both employee and employer pay less NI.
Experts say the scheme had a big effect on people’s tax and in cutting emissions, but the government ended up losing out on the tax revenues. Deloitte estimates that about 500,000 company car drivers could be affected by the proposals. “It makes the decision to give a car as a perk a harder and harder thing to do, so the market will be affected,” Mike Moore, head of car consulting at the firm, said.
