The British Vehicle Rental and Leasing Association (BVRLA) has urged Chancellor, George Osborne to reconsider the way the Government treats company car drivers ahead of the Budget 2016. As part of a submission to Mr Osborne, the association has pleaded with the Government to stop punishing company car owners and carry out a wholesale review of the taxation system, recognising the benefits these vehicles bring in terms of reduce emissions on the road and tax revenues. Gerry Keaney, chief executive, BVRLA, said: 'Since George Osborne became Chancellor in 2013, company car drivers have been hit by a series of tax increases that are both unfair and unsignposted. 'It is no coincidence that we have seen 30,000 fewer employees taking a car as part of their work package during this period.î There is a belief within the association that company drivers are increasingly choosing to drive their own vehicles, which tend to be older on average, more dangerous and emit more pollution than newer models. 'By encouraging employees to give up their company cars, the Government risks hundreds of thousands of motorists opting for older, privately-owned vehicles that are not built to the same safety and emissions standards,î added Keaney. 'In 2015, BVRLA members purchased nearly 50% of all new vehicles sold in the UK, and the average BVRLA member's leased car emitted just 117.8g/km CO2.î The BVRLA anticipates the two per cent increase in company car tax from 2017-18 and the delay in removing the three per cent diesel supplement cost will hit the average company car driver in the pocket to the tune of £626.94 in 2017-18, followed by £882.26 in 2018-19, compared with outgoings in 2013-14. 'The Chancellor must use the Budget to reverse some of the damaging decisions he has made recently, including the delayed abolition of the 3% diesel supplement,î said Keaney. 'These measures are at odds with the government's stated aims to increase the take-up of ultra-low emission vehicles and improve air quality in the UK.î The other key recommendations to come out of the pre-Budget submission are:

  • Abolish the 3% diesel supplement on benefit in kind (BIK) tax bands for Euro 6 cars from 2016
  • Reform BIK bandings, offering a greater incentive for users of ultra-low emission vehicles
  • Make leased vehicles eligible for First Year Capital Allowances
  • Introduce a new tax category for electric vehicles that takes their range into account
  • Provide more in-life incentives for ultra-low emission vehicle drivers
  • Protect the benefits of company salary sacrifice schemes
  • Provide incentives for the fitment of Autonomous Emergency Braking technology