Car tax changes: Campaigners demand changes to ‘confusing’ and ‘inconsistent’ rules

Martin Lewis gives money-saving advice on VED car tax

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The specialists have demanded company cars should be used by employees at either no extra cost or at a lower price. They have also called for a “clear definition” of how often drivers are allowed to use their company cars for private use.

Many firms do not have a set structure in place which can see road users being caught out and disciplined by their firms.

The AFP warns this can lead to “confusion” and “inconsistency” and has demanded for changes to be made.

The AFP said drivers should be allowed to use their cars for less than 1,000 miles per year to allow them to use the car for basic chores.

In light of the pandemic, the AFP has also demanded the home working definition and concessions surrounding this should be extended.

Paul Hollick, Chair of the Association of Fleet professionals said their new proposals for company car tax are “constructive” and “realistic”.

He said: “A key element of the thinking behind the formation of the AFP just over a year ago was the need for an effective and engaged campaigning fleet industry organisation and the tax manifesto is really the first signs of that intention.

“We’ve been having wide-ranging discussions with our members and other interested parties about areas where we believe that the taxation of fleets and mobility needs changing or developing to create effective incentives, greater certainty and more fairness.

“The results, which we believe are constructive, realistic and thought-provoking, are contained in this document.

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“We plan to use it as the foundation for our conversations with the Government and HMRC in the coming months and years.”

Alongside the call for fairer fleets, the AFP has also issued a 13 point manifest for further changes to the tax sector.

They have called for wider transparency surrounding benefit in kind rates to ensure prices for the next decade are published early.

The AFP has also said tax breaks are needed for some employees willing to use shared or low carbon transport.

Meanwhile higher taxes for older vehicles may be justified to encourage the take-up of cleaner options.

The AFP has also demanded clearer signs for EV initiatives and road tolling programmes while Clean Air Zones should be “co-ordinated nationally”.

They also want to see changes to inner city parking and a national roadide charging system as more drivers switch to electric cars. 

Mr Hollick added: “Of the 13 points, several could be implemented very easily indeed, almost at the stroke of a pen.

“Others, such as the need for discussions around a road tolling plan, are very much strategic and part of longer-term shifts in policy.

“What we hope to see now is the Tax Manifesto 2021 considered across the fleet and mobility sectors and to hear the reaction from all parties who have an interest.

“It is by no means a fixed document and we are very much open to further ideas and refinements.”

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