RACHEL Reeves’ changes to company car tax could mean the end of the road for two popular types of vehicle.
The Autumn Budget was revealed last week and it introduced a host of new things for drivers across the UK to consider.
For car-owners in the UK, the Budget strongly focused on promoting low-emission vehicles.
Electric cars, or EVs, will be given a considerable boost with their first-year vehicle excise duty staying low, but for hybrid vehicles it could vary between £110 and £130.
And for petrol and diesel motors, many will see their VED rates double, meaning traditional fuel-powered cars will cost significantly more in terms of road tax.
Company car tax incentives also strongly support a switch to EVs, while tax rates for hybrids are set to increase more steeply, and it’s the same for petrol and diesel vehicles.
According to the Association of Fleet Professionals, many businesses will now need to redraw their vehicle choice lists following the Budget.
Labour’s push to move company car drivers into zero-emission vehicles means many operators are facing significant tax increases – unless they take immediate action to revise their vehicle policies.
Paul Hollick, chair at the AFP, said: “The Budget can be viewed as something of a tidying-up operation by the government when it comes to company cars.”
Plug-in hybrid drivers face particularly steep tax increases, especially for new PHEV owners.
Hollick added: “Drivers who have recently taken on a PHEV on a four-year cycle will see their tax massively increase in its last year.
“Many drivers are expected to approach their employers about early vehicle changes to avoid the tax hike.”
Among the changes, double cab pick-ups will be reclassified as cars from April 2025, marking a significant shift in fleet taxation.
This includes ‘grandfather rights’ for existing users until the 2029-30 tax year at the latest.
Hollick said: “The situation for double cabs is perhaps less acute because of the grandfather rights situation but anyone still in a double cab after April 2029 is going to see an exponential increase in their tax.”
The AFP has suggested these two types of vehicle could virtually disappear from company car fleets in the coming months and years.
The most popular PHEV motors in the UK last year included the Ford Kuga, Honda Civic, Toyota Prius, as well as more high-end models such as the BMW 530e, Mercedes GLC 300e, and the Range Rover P510e.
A host of double-cab pick-ups are bestsellers too, including the Ford Ranger.
This comes as a busy motorway used by over 120,000 motors every day is set to close across two weekends, sparking disruption for millions.
The route serves one of the UK’s busiest airports and has already been voted the worst in the nation.
Elsewhere, an incredible supercar that’s one of just 10 ever made is to be sold by a mysterious car collector.
The rare motor’s current owner says he has “too many cars”, and is keen to let someone else enjoy it.
