Increased Taxes for Company Car Drivers

Those who have felt lucky to have landed a job which comes with a company car attached might feel an increased strain of their pockets in the near future, after the British announced their anti-crisis measures and budget earlier this week.

Whereas a few days ago the bad news fell like a hammer on the heads of those who drive luxury company cars, the measure to increase the taxes for all drivers of company cars extend the pool of people that might feel financially bullied quite a bit, as the new provisions apply to all types of cars.

According to The Telegraph, the increase is of only 1 percent on average, but that little number might land an extra GBP125 million to the Kingdom's budget after the new taxes come into effect in April 2013.

The new way of calculating the taxes will differentiate owners of polluting cars from those who use vehicles of the new, green generation. According to The Telegraph, owners of a Ford Mondeo equipped with a 2.0l engines will pay an extra GBP76 a year, while drivers of company Prii hybrids will not pay an extra dime.

“Company car drivers will be disappointed by the extra cost of having what many regard as a tool for work, however the improved mileage allowance for people who use their own on company business is a significant boost,” said AAA spokesman Luke Bosdet, according to the source.

“The increase could also stem the exodus of volunteer drivers from important voluntary community services who were happy to give their time but not pay for the privilege.”