Company car tax confusion, says Halifax

According to a survey by the NOP on behalf of the Halifax, just over half of all adults either do not realise that company car tax is now based on emissions rather than the number of miles clocked up or they are surprised at the rules.

The survey also includes a warning for the taxman with a suggestion that existing company car drivers might give up their perk if taxes continue to rise.

The Inland Revenue has said in the past that it expects the emissions based tax system will mean more people getting company cars as a perk. However, the survey indicates that this may not be the case and that most company car drivers would consider giving up their vehicles if taxation became too high.