HMRC told to exempt cars from its employee benefit plans


The BVRLA has responded to HMRC’s consultation into employee benefits this week, calling on the government to stop the planned tax raid on the company car market.

Chief Executive Gerry Keaney believes the government should exempt employer-provided cars from the changes because, unlike other employee benefits which remain untaxed, company cars are already subject to an effective and progressive tax regime.

Recent research from Oxford Economics estimates that the employer-provided car sector is responsible for around 217,000 new car registrations each year, supporting thousands of jobs in the UK.

Keaney said: “Our analysis suggests that HMRC’s proposals could have a negligible impact on tax revenues as some drivers give up their company cars and stop paying benefit-in-kind tax entirely.”

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