Company cars and rising taxes

Constant changes to tax on company car users create complexity and higher costs for business. Caroline Harwood, partner at BDO assesses the latest tax developments

The tax treatment of company cars has been an area of focus for the government for several years. This has been driven by the environmental agenda and the route to net zero, and has led to complexity and an increasing tax burden for many company car drivers. However, there have been significant tax breaks for those driving electric vehicles and savings available for those in employee car ownership schemes (ECOS) although the latter is set to change.

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