April tax hikes set to hit business drivers
More than seven in 10 business drivers have admitted they are concerned about the upcoming April tax hikes.
The April reforms include the first fuel duty rise in over a decade, changes to company car taxation, and increases to Vehicle Excise Duty (VED). In addition, Benefit-in-Kind rates for electric vehicles will increase by six per cent.
According to a new survey by Venson Automotive Solutions, 72% of business drivers believe this package of tax measures will impact them financially and raise cost of car ownership.
The research also found that government policy designed to encourage EV uptake is influencing driver behaviour, with 13% of motorists saying they will opt for a lower-tax ICE vehicle or an EV at their next company car renewal, while 31% claiming they will pay closer attention to emissions when selecting their next vehicle.
Meanwhile, 25% of respondents expect their employer to review company car policies and provide greater support in response to rising vehicle taxes.
Confusion
Simon Staton, client management director at Venson Automotive Solutions, said: “With April’s package of motoring changes approaching, overlapping adjustments risk creating confusion, particularly for business drivers.
“BiK amendments, the expiry of EV incentives and inflation-linked VED increases all add complexity when trying to determine the most cost-effective company car option. It is no surprise that many drivers are turning to fleet professionals for guidance.
“At times like this, fleet management suppliers working with the fleet and HR functions demonstrate their value, supporting both drivers and the business by realigning company vehicle policies with the changes and ultimately helping to maximise total cost of ownership.”
