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Rachel Reeves' car tax changes see drivers of certain vehicles pay £10,094 to travel on UK roads
Jun 27, 2025
Benefit-in-Kind taxes brought in £1.19billion for the Treasury in the last financial year
The Treasury raked in almost £1.2billion in Benefit-in-Kind payments last year, with new car tax hikes introduced by Chancellor Rachel Reeves could punish motorists further.
Recently released data found that the Treasury collected £1.19billion in income tax and £470million in National Insurance contributions from company car drivers in the 2023-24 financial year.
The figures revealed that 840,000 employees paid company car tax during the period, marking an 80,000 increase from the previous year and representing a 10.5 per cent rise.
Despite the growing number of recipients, the total taxable value of company car benefits fell to £3.27billion from £3.6billion in 2022-23.
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HMRC's data showed that electric vehicles accounted for 41 per cent of all company cars, or 340,000 vehicles, up from 220,000 in the previous tax year.
This shift towards electric power has helped reduce the average CO2 emissions of company cars to 56g/km in 2023-24, down from 71g/km the year before.
Meanwhile, the average taxable value for car benefits dropped to £3,910 from £4,750 in the previous year, with electric vehicles attracting lower BiK rates.
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