Thanks to Fleet News for pointing out that the Government’s “Transitioning to Zero Emission Cars and Vans: 2035 delivery plan”, reconfirms the commitment to keep the company car tax scale charge for full EVs to 2% until April 2025.
Client’s often ask us what we think will happen after that, and we say we really don’t know BUT would be surprised to see rates rising sharply in the short to medium term.
The other thing we’ve been suggesting for a while that we’d see as the next battleground for car taxes is Road Pricing. We expect this to turn into clear rules and an implementation timetable given the speed at which fuel duties will be eroded by the rise of the EV and the general need to increase the tax take to pay for Covid. Company car taxes are after all less than a tenth of the amount brought in by fuel duty and the associated VAT.