HMRC reveals rise in company cars
New statistics from HMRC have revealed a rise in company cars, with the number of employers paying company car tax up to 840,000 in 2023-24.
This is up from the 760,000 employers who were paying company car tax the previous year.
However, the number of company car drivers could actually be even higher with HMRC admitting there is ‘considerable underreporting’ after voluntary payrolling was introduced in April 2016.
Despite the rising numbers though, the latest benefit-in-kind statistics found that despite a 10% increase in the number of company car drivers, the total taxable value of company car benefit actually fell to £3.27bn from £3.6bn the previous year.
HMRC attributes this partly to more electric vehicles joining company car fleet.
Car tax
The data has also found that the long-term trend in both the number of recipients and the total taxable value of car fuel has continued.
Recipients have fallen from 240,000 in 2011/12 to just 40,000 last year, with taxable value decreasing from £770m to £170m. HMRC says this is due to rising fuel prices making employers consider whether the value of the benefit received is worth the fuel benefit tax charge.
Again, the rise in electric vehicles has also meant fewer company car drivers used car fuel last year.
