Business Drivers Concerned About Tax Changes Ahead of April Budget
A recent survey by Venson Automotive Solutions shows that 72% of business drivers are concerned about upcoming tax changes taking effect in April, ahead of the Spring Budget. The changes will affect Benefit-in-Kind (BiK) taxation, Vehicle Excise Duty (VED), and the Expensive Car Supplement (ECS) threshold for electric vehicles (EVs).
For EVs and other low-emission vehicles emitting under 75g/km of CO2, BiK rates will increase by 1 percentage point, meaning most EV drivers will see their BiK rise from 3% to 4%. Meanwhile, the ECS threshold for EVs will increase to £50,000, reducing the number of EVs liable for the additional VED charge. Standard VED rates will also rise slightly by £5 to £200 for vehicles registered after 1 April 2017.
The survey found that almost 10% of business drivers were unaware of the forthcoming changes, and 25% expect their employers to review company car policies as a result. Some drivers are already considering alternatives, with 13% saying they would opt for an EV or lower-tax internal combustion vehicle for their next company car, while 31% plan to pay closer attention to emissions and pricing when selecting their next vehicle.
The end of the Fuel Duty freeze in September adds further context to rising running costs, highlighting the importance of tax-efficient company car choices for both employees and fleet managers.
For businesses and company car drivers, understanding these updates is essential to manage costs, maintain compliance, and make informed vehicle choices in a rapidly changing tax landscape.