Tax changes afoot for car users

Rebecca BennyworthBy Rebecca Benneyworth

A variety of tax changes will impact business motoring costs next year, adding upward pressure to that already exerted by the rising price of fuel.

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Comments
RebeccaBenneyworth's picture

Fuel not as good as I suggested

RebeccaBenneyworth | | Permalink

Paul, you are quite right, my sweeping statement was misleading. It is hoped however that HMRC might raise the rates still further - the base price for petrol in their model is 88.1p. It is difficult to get a fix on the average price of petrol across the UK, but in theory if this exceeds 97p per litre we shold see another increase (10% increase in fuel price) - we probably aren't there yet!

LPG and hybrids

rtrussell01 | | Permalink

If you look at factory-built hybrids and dual fuel vehicles it is clear that the company car tax percentage will be the same or less in 2006/7 bar one exception. Drivers of the Honda Insight will be walloped with a 20% increase. Although there aren't many out there, it is ironic that the early adopters of one of the lowest emission cars ever will be the only drivers adversely affected.

Details of other cars can be seen at www.comcar.co.uk/dir1in.cfm

Paul Scholes's picture

I can wait

Paul Scholes | | Permalink

Thanks Rebecca - to be honest it's all a bit academic and I'll also be glad to drop the VAT claim on my fuel mileage. At 80mpg in a Smart Diesel it's the 40ppm that will make my fortune!

Paul Scholes's picture

Bright Spot?

Paul Scholes | | Permalink

Rebecca mentions at the end a 1p increase in fuel only rates whereas the HMRC page shows no increase for vehicles below 2000cc and for >2,000cc engines a 2p increase for petrol and 1p increase for diesel.