72% of business drivers concerned about April tax hikes
Venson survey finds rising unease with motorists seeking more guidance from employers as company car policy changes anticipated
www.venson.com
A new survey[i] by Venson Automotive Solutions reveals that 72% of business drivers are concerned about the package of tax changes due in April, which will make driving petrol and diesel vehicles more expensive. Nearly one in 10 of those surveyed said they were unaware the tax rises were coming, meaning the changes could come as a financial shock.
The April reforms include the first fuel duty rise in over a decade, changes to company car taxation, and increases to Vehicle Excise Duty (VED). As higher costs for ICE vehicles take effect, company car drivers will need to reassess total cost of ownership (TCO), particularly as rising VED, and wider inflationary pressures add to overall running costs. In addition, Benefit-in-Kind (BiK) rates for electric vehicles will increase by 6%, however, these rates are still much lower than the BiK for petrol and diesel company cars.
According to Venson’s findings, Government policy designed to encourage EV uptake is already influencing driver behaviour. 13% of motorists said they intend to opt for a lower-tax ICE vehicle or an EV at their next company car renewal. Meanwhile, almost a third (31%) of business drivers say they will pay closer attention to emissions and list price when selecting their next vehicle to help manage costs.
From 1 April, the standard annual VED rate for cars registered from 1 April 2017 onwards will rise from £195 to £200. New petrol and diesel cars will face higher first-year showroom tax costs, with increases across most CO₂ bands. The highest-emitting vehicles could see first-year charges rise to [1][2].
While most vehicles revert to the standard £200 annual rate after year one, cars above the relevant price thresholds will continue to attract the Expensive Car Supplement (ECS). Petrol and diesel cars priced above £40,000, and zero-emission cars above £50,000, will incur an additional £440 per year on top of the standard rate between years two and six after registration.
Overall, the level of impact will depend on a vehicle’s registration date, CO₂ emissions, list price and whether it is newly purchased. Higher-emission and higher-value vehicles will see the most significant increases.
As the changes take effect, many business drivers are looking to their employers for guidance. A quarter (25%) of respondents say they expect their employer to review company car policies and provide greater support in response to rising vehicle taxes. Another 30% believe their employer could make further changes but they are unclear what form these might take.
Simon Staton, Client Management Director at Venson Automotive Solutions, says, “With April’s package of motoring changes approaching, overlapping adjustments risk creating confusion, particularly for business drivers. BiK amendments, the expiry of EV incentives and inflation-linked VED increases all add complexity when trying to determine the most cost-effective company car option. It is no surprise that many drivers are turning to fleet professionals for guidance.
“At times like this, fleet management suppliers working with the fleet and HR functions demonstrate their value, supporting both drivers and the business by realigning company vehicle policies with the changes and ultimately helping to maximise total cost of ownership.”
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[2] https://www.gov.uk/government/publications/budget-2025-overview-of-tax-legislation-and-rates-ootlar/annex-a-rates-and-allowances?utm_source=chatgpt.com
[i] QuestDIY surveyed 300 people who drive for business on 24th February 2026
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