Jason Dawe
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It always seems to be a good time for politicians to float new policies, ideas and plans just as the weather gets warmer. With parliamentary summer recess just around the corner and a new Prime Minister limbering up in the wings, now is a good time to tidy up loose ends, introduce some new policies and then push off for the summer hols. Like school on the last day of term, nobody is really listening and everyone is demob happy. But come October we will all suddenly be screaming in disbelief when we find our refuse is now collected every other month, the local post office is a discount shop and we need a biometric passport when we cross the county boundary with a slop bucket.
But until such time we are content to potter around in the garden, make the most of the long days and balmy evenings, and try and grab a few days of holiday. It all seems so far away. “Nothing much will happen,” you lazily muse as you sit by the pool sipping an ice cold drink. Words that have a horrible way of coming back to haunt you.
A story which is beginning to bubble and fits this category appeared this week. Revelations were made of a cunning new stealth tax, once again aimed at the motorist, reportedly being considered by ministers. Apparently there are plans afoot to lower the tax threshold paid by employers to employees who use private cars for work. The figures bandied about were for a planned reduction of 15p from 40p-per-mile to 25p for those using vehicles with CO2 emissions above 185 grams per kilometre. A quick check on the calculator suggests that if you drive 10,000 miles for work you could find you are £1,500 a year worse off.
The AA condemned the proposals, maintaining that the realistic cost of running a car was about 43p a mile. A spokesman said: "We fear that if the untaxable allowance for cars covering 6,000 to 10,000 miles is virtually halved from 40p to 20 or 25p, workers and volunteers driving longer distances, particularly in rural areas, will lose out substantially.”
I wonder if one of the reasons behind this is that apparently not enough of us are really giving consideration to the CO2 emissions our cars produce. A recent MORI poll shows that low CO2 emissions are still less important to buyers than annual running costs. Although sales of smaller superminis and fuel efficient diesel cars have risen, low emissions run a poor second to motoring costs when it comes to the decision making process. When asked if low carbon dioxide or low annual running costs were more important, just 13 per cent of survey respondents said low-CO2.
A spokesperson from Revenue and Customs has insisted that these plans are “mere speculation”, but the backlash has begun. It’s always a good strategy to make proposed legislation seem initially worse, before introducing the changes but with apparent concessions to keep the complainers happy. Always nice to leave plenty of time to manoeuvre and debate, before announcing that you have listened to the public and now plan to reduce it to 30p instead. Makes you seem caring and considerate, especially when you then unveil a proposed “Car buyers information pack” (joke – I hope!)
What annoys me is that there seems very little thought about the fact that many people use their own cars for work because they don’t have an alternative form of transport. Their employers don’t have pool cars they can offer, and not everyone has good public transport or can use it for their working commitments. A quick example would be that of a community nurse in a rural area, using their own car. Already the true cost of using a private car for work is more like 43p a mile, but these people continue to work without complaint. Along with millions of others, once they find that they are going to be severely out of pocket they may, quite rightly, refuse to allow their cars to be used for work. This would involve a massive burden on business, voluntary and community health organisations who would then have to use other alternatives to provide services and keep staff.
It is also quite possible to buy a large thirsty car that still falls below the CO2 emissions criteria set, and uses more fuel than a supermini. Manufacturers know where the market is going, and channel research into engine and fuel technology with eyes firmly on the eco lobby. Big cars don’t always mean gas guzzling pollution - you don’t save the planet only if you are driving a tiny car.
The full details of the proposal for this tax cut (see what they’ve done there?) are still vague, but, like the road charging petition from a few months back, this story could run and run… but shortly at only 25p a mile.
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"Are people like me to have our jobs protected if we object ? Does an employee have the right to refuse ? Because my guess is that my employer faced with buying and maintaining a car, or making me pay £1500 will find it a fairly simple choice."
Well. No. You won't have your job protected because the government doesn't care about you.
I might suggest that you're suddenly "unable" to obtain insurance which includes business miles. Sacking you for refusing to drive around uninsured would consitute a pretty clear-cut unfair dismissal, so your employer would have to supply transport instead...
Katie, Cambridge,
People are rightly sceptical of CO2 emissions. This is but another stealth tax. Where is the opposition when one needs it?
Ian, Bristol,
I don't qualify for a car allowance but am required to travel for work regularly. The tax allowances for personal car use were set some 7 years ago when petrol was around 70p a litre and have remained static since then and is yet another stealth tax on the working public with fuel now around 40% more expensive. The reason for the differential for the 1st 10k miles is in part to cover the additional outlay a driver has when they insure their car for business use. The point of expenses is to ensure that a person is not financially penalised for undertkaing their job and few would argue that busines miles are a perk.
I now hire a car for all my business travel as there are no tax implications for this. This equates to an additional 90 miles extra fuel for delivery and collection to my house each time I hire a vehicle and I now drive further than I did to justify the expense to the company.
Anon, Northampon,
My wife uses her car to travel and use her car whilst at work as an Occupational therapist / care in the comunity. She travels from Paington to kingsbridge and to Tavistock in devon which are around 40 miles and 120 miles repectivly round trips from Paignton. This is a lot of mileage and recently bought a used car(a rover 75 diesel tourer),which is a superb car 50mpg so to already save money on the rediculous ammount we are charged for fuel taxes. If the goverment go ahead with these charges there is no way she would be able to continue in this position.I also wonder as she works a county council whether local authorities will pay re burse all this extra money to employees, especially in more rural,remote areas.Are we not taxed to the hilt already in this country. This i feel is not an issue about carbon footprints rather an more an issue of an excuse for this goverment to ride on the back of green issues and tax people even more money!! Big board directors of industrybigpayotstaxthem
hud downham, Paington, Devon
I have to use my car for work. It's in my employment contract, but I made that choice when I took the job based on the 40p figure. I have already said I wasn't happy using my car over 10K miles because of the tax implications and was basically told it would be frowned upon if I took that stance and that I knew that was a possibility when I took the job (true) so I caved in for the sake of my career. Are people like me to have our jobs protected if we object ? Does an employee have the right to refuse ? Because my guess is that my employer faced with buying and maintaining a car, or making me pay £1500 will find it a fairly simple choice.
wombat, birmingham, uk,
My Wife, a community Nurse currently uses her own car to do her job for which she receives a mileage allowance.
Make no mistake, she, and many of her colleagues, will be looking for an NHS supplied vehicle if this mileage cut is carried out.
Without going into details, as it impinges on other areas on her employment, I can only repeat my weekly mantra "You should not be subsidising the largest employer in Western Europe".
Keith, Hythe, Kent., U.K.
stealth tax.its planes that r the fastest growing source of co2 emmisions in UK!
ie what govment use!
MARK W, B,HAM,
People drive to work or for work because they have to, not because they want to. The government needs to steer clear of this tax (pun intended).
Nobby Clark, London,