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Latest News

Tax bills cause UK workers to shun company cars

by Georgina Fuller 19 Dec 2005
by Georgina Fuller 19 Dec 2005

More than 300,000 UK employees have had to give up their company cars to avoid rising tax bills, according to a study by accountants Deloitte & Touche.


 


The number of employees with a company car fell from 1.6 million in 2000 to 1.3 million last year, the study revealed.


 


The drop is thought to have been caused by government proposals to encourage businesses to invest in “cleaner” cars to lower carbon dioxide emissions and cause less damage to the environment. But the higher taxes on expensive cars have meant a rapid increase in tax bills for many companies.


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The Treasury raised £1.96bn from company car taxes in 2000 but this fell to £1.64bn last year.

Georgina Fuller

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