An influential ‘think tank’ is proposing replacing vehicle excise duty (VED) with a one-off charge on new cars based on CO2 emissions, which would be included in benefit-in-kind (BIK) calculations for company cars.
CentreForum says the Government would set an annual emissions "pivot point" equal to the emissions of the best performing 1% of cars the previous year. Cars with emissions below the 1% level would receive a subsidy. Cars above this level would attract an emissions charge at the time of purchase.
For example, if the pivot point was 94g/km of CO2, cars with emissions above 94g/km would pay a first registration charge of between £35 to £50 per gram above 94g and cars with CO2 emissions lower than 94g would therefore receive a subsidy of £50 per gram below that level.
CentreForum says that this one-off charge would then be included in what is the current P11D price to calculate BIK liability.
Read next week’s Fleet News for a full report, including comment and analysis, on the CentreForum scheme.
Pa Broon - 04/10/2012 22:49
For those of us with no choice but to have a company car because the very nature of the jobs or industries dictates its use we are once again hammered. The Revenue does not recognise that you may decide not to use the vehicle for private use.So unless you supply the car and can charge the company the maximum 45p per mile you might have to consider give the job up and joining the public sector.