Who looks at the picture above and thinks “company cars are the problem”?

HM Government’s focus seems to be in driving all ICE company cars off the road. The scale charge for 1 litre petrol Renault Clio is an unbelievable 24% (25% next year) which means an employee’s effective tax rate on the company car benefit could exceed 100%.

We’ve seen 150 thousand company cars drivers opt out in just the last two years – and anecdotally we all know someone who’s taken the cash and bought a petrol SUV with CO2 emissions often 50% higher.

We totally agree that the future is electric (although arguably we’re one episode of Panorama away from an uncomfortable debate around some of the materials in those batteries). But the stark reality is that the supply at the right price just isn’t there and probably won’t be for a couple of years yet, and many high mileage drivers therefore have no choice but to pay 100%+ effective tax rates on what amount to essential need cars.

We’d like to see a max company car scale rate of 15% for ALL cars (petrol and RDE2 diesel) that get under 105g/km of CO2 under WLTP. Do you agree? Let us know…