{"id":246357,"date":"2023-11-25T10:19:14","date_gmt":"2023-11-25T10:19:14","guid":{"rendered":"https:\/\/automotobuzz.com\/?p=246357"},"modified":"2023-11-25T10:19:14","modified_gmt":"2023-11-25T10:19:14","slug":"drivers-may-miss-out-on-massive-car-tax-savings-due-to-new-law-change-in-months","status":"publish","type":"post","link":"https:\/\/automotobuzz.com\/car-reviews\/drivers-may-miss-out-on-massive-car-tax-savings-due-to-new-law-change-in-months\/","title":{"rendered":"Drivers may miss out on massive car tax savings due to new law change in months"},"content":{"rendered":"

<\/p>\n

New law changes set to come into effect in April may see dozens of drivers miss out on massive car tax benefits, according to experts.<\/p>\n

The Chancellor announced an increase to the national living wage from next year in his Autumn Statement with the fees rising to \u00a311.44.<\/p>\n

However, specialists have warned the rise may mean some lower-earning employees no longer qualify for salary sacrifice schemes.<\/p>\n

These business-run projects enable drivers to lease vehicles and pay for them with pre-tax income. It means drivers who take advantage of the scheme will pay slightly less income tax than other employers.<\/p>\n

The system has allowed many businessmen to get their hands on expensive electric cars for less in a boost to EV adoption.<\/p>\n

READ MORE <\/strong> New driving law changes set to \u2018remove biggest barrier\u2019 to electric cars\u00a0<\/strong><\/p>\n

<\/p>\n

But, employers can only offer salary sacrifice schemes to employers as long as it doesn\u2019t reduce their salary below the minimum wage.<\/p>\n

It means those sitting just above the \u00a311.44 per hour pay bracket may now be ineligible as taking on a vehicle could drop them below this line.<\/p>\n

Caroline Sandall-Mansergh, consultancy and channels development manager at Alphabet GB admitted the new wage rise could backfire for many.<\/p>\n

DON’T MISS <\/strong>
\u2018I\u2019m a car expert – the Autumn Statement could slap drivers with a \u00a3600 bill'[LATEST] <\/strong>
Drivers blast Jeremy Hunt’s Autumn Statement as ‘missed opportunity'[ANALYSIS] <\/strong>
I\u2019m a car expert and second hand cars could get older drivers to switch to EVs[COMMENT] <\/strong><\/p>\n

<\/p>\n