F&I Management & Training

Changes to the way car dealer staff will pay company car tax due to be introduced later this year have not been thought through properly, and the Retail Motor Industry Federation (RMIF) is challenging Government on the proposals. HM Revenue and Customs (HMRC) are revising the way that tax due on company car use for motor trade staff is collected. The current situation, where dealers make individual agreements with their local tax office, is perceived to be inconsistent. A new national arrangement will come into force on 6 April 2009, and will replace all local agreements. According to RMIF Director Sue Robinson, there is major concern that the proposed changes have been made without proper evidence, or consultation, and without any assessment of the likely impact on the industry and its employees: 'No evidence of any suggested abuse of the current system has so far been provided by HMRC, and there has been a lack of consultation on the issue. Although HMRC consulted trade bodies on the changes, it was obvious they had already decided the main outline of the scheme prior to discussion. The RMIF have concerns about the arrangements, and have strongly lobbied for changes with HMRC only agreeing to minor amendments.' Robinson also believes that many businesses will be caught by surprise if the changes are made in April: 'We do not believe that those who will be affected by these amendments have been formally advised by HMRC of the change in approach.' The RMIF has written to Exchequer Secretary Angela Eagle MP to request a deferment of the proposals, and intends to work with HM Treasury to determine and implement a more practical solution.

DATED: 15.02.09

FEED: AW