Company cars: Government tax and regulations

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Concerns about our environment have given the government cause to increase tax on company cars with the aim of reducing pollution through reducing business miles, writes CIPP'S senior policy liason officer Diana Bruce. 

A new system was introduced in 2002 for employees who also use their company car for private mileage, resulting in the lower the CO2 emissions, the lower the tax charge, so polluting cars now suffer greater tax charges.  This article includes information about: 
  • Emission changes
  • Car or allowance
  • Reporting
  • Common errors
  • National Insurance Contributions

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