Scrap benefits tax on company cars paid out of car allowances

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Scrap benefits tax on company cars paid out of car allowances

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This petition is to scrap car benefit tax on cars paid for by employees out of car allowances. The current practice used is as follows:

1) Add a car allowance to the gross annual salary in the contract of the employee
2) Lease cars in bulk from agents
3) Deduct the car allowance from the payslip of the employee to pay the lessor, which can be more than actual lease payments
4) Tax the car as a company benefit based on the market value of a new car

HMRC and the company win unfair income. The employee loses their car allowance and is taxed on a benefit they paid for. The company acts as an agent between the lessor and the employee and provides no financial benefit to the employee, but receives the full car allowance before paying for the car. Tax investigations raise further income for HMRC in the form of interest and penalties. This practice is not lawful and amounts to fraud, and it should be scrapped. The tax charged in this way should be refunded.

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