Car tax changes: Petrol, diesel and electric owners affected by new tax rise from today

Car tax changes: Petrol, diesel and electric owners affected by new tax rise from today

For those who pay 20 percent income tax, the new one percent charge would only see drivers charged an extra £59.58 per year.

However, those who pay 45 percent income tax will be paying up to £134.06 per year under the new scheme.

Ms Howarth added drivers had been making savings of over £10,000 by using salary sacrifice schemes.

She said demand for the schemes had “skyrocketed” last year as businesses looked for extra incentives for staff.

Published at Tue, 06 Apr 2021 23:01:00 +0000