Industry News from Yes Insurance

Drivers could save money on taxes by choosing cars with lower emissions, an expert has said.

Neil Cleghorn, Freeborn Group at business sales manager, advised car insurance customers to opt for vehicles which produce less than 120 g/km CO2 in order to avoid higher Benefit in Kind taxes.

Even buying a car with one extra gram of emissions could cost drivers an additional £85 per year, he said, as it would push the vehicle from Band C to D. Changing from a Band F to a G model could add £190 to annual tax bills.

Firms which use company cars and self-employed workers are likely to be hit hard by the tax, Mr Cleghorn added, explaining they could face extra costs of £1,330 per year by choosing "an ordinary diesel" car which emits 145 g/km CO2.

"And imagine the potential if you chose something really exotic where the tax has telephone number proportions," he commented.

This week, road safety minister Jim Fitzpatrick pledged his support to Brake's campaign to urge employers to introduce travel plans to increase fuel efficiency.

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