Tax changes afoot for car users

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!

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

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!

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.