Question. When all conventionally engine cars suffer company car tax at the maximum of 37%, what control will HMG have over CO2 emissions?

Something interesting is happening to company car scale rates, with the new CO2 numbers starting to roll out now from manufacturers.

Back in 2002, Gordon Brown, bless him, changed the tax system to focus employers and employees on taking lower CO2 cars. And it worked pretty damn well.

But since 2012 we’ve seen significant rises in the percentage of list price that is subject to tax. This has had the effect that, from April, lots of sensible “bread and butter” working fleet cars with petrol and diesel engines will be over 30% of list price. Many will be at the max of 37%.

But does that mean you’ll shortly not need to worry about CO2 anymore? If the car emits more, then the tax is the same because you’ve reached the max…

The fact that the tax percentage on a 2.0 TD and a 5.0 V8 petrol is now the same tells you all you need to know about our company car tax system.