Business Drivers Express Anxiety Over Forthcoming Car Tax Reforms
New research has uncovered significant apprehension among business drivers regarding the upcoming car tax changes scheduled to launch in April. According to recent data, a substantial majority of professional motorists are worried about the financial implications of these adjustments, which are set to impact various aspects of vehicle taxation.
Survey Reveals Widespread Concern Among Professional Motorists
The data indicates that 72% of business drivers have expressed concerns about the package of car tax changes that will take effect in April. Interestingly, the survey also found that one in ten drivers admitted they were completely unaware of any tax modifications occurring during that month, highlighting a potential information gap among motorists.
Simon Staton, client management director at Venson Automotive Solutions, commented on the findings, stating: "With April's package of motoring changes approaching, overlapping adjustments risk creating confusion, particularly for business drivers. Benefit-in-Kind amendments, the expiry of EV incentives and inflation-linked Vehicle Excise Duty increases all add complexity when trying to determine the most cost-effective company car option."
Specific Changes Impacting Business Drivers
The tax modifications set for implementation include several key adjustments:
- Benefit-in-Kind taxation rates will increase by one percentage point for all vehicles emitting under 75g/km of CO2, including electric vehicles
- For the vast majority of electric vehicles, Benefit-in-Kind rates will rise from 3% to 4%
- The Expensive Car Supplement threshold for electric vehicles will increase to £50,000, reducing the number of EVs subject to additional Vehicle Excise Duty
- Standard Vehicle Excise Duty rates will increase by £5 to £200 for vehicles registered after April 1st, 2017
Drivers Adjusting Vehicle Selection Strategies
In response to these impending changes, the data reveals that 13% of motorists plan to opt for lower-tax petrol or diesel vehicles, or electric cars, as their next company car renewal. Additionally, nearly one-third of drivers stated they will pay closer attention to emissions and list price when selecting their next vehicle, indicating a shift toward more tax-conscious decision-making.
Staton added: "It is no surprise that many drivers are turning to fleet professionals for guidance as they navigate these complex tax changes. The overlapping nature of these adjustments creates particular challenges for business drivers who must consider both personal and corporate financial implications."
The research underscores the significant impact these tax changes are expected to have on business drivers across the country, with many seeking expert advice to understand the full implications for their vehicle choices and financial planning.
