Changes to the rules governing company car tax could impact on motor traders with commercial insurance policies.

According to the Retail Motor Industry Federation (RMIF), the current system, where dealers hold individual agreements with local tax offices, is set to be altered.

Sue Robinson, the organisation's director, claims there has been insufficient preparation for the modification, as there has been no assessment of the decision's impact on the sector.

"No evidence of any suggested abuse of the current system has so far been provided by HM Revenue and Customs (HMRC) and there has been a lack of consultation on the issue," she states.

The director says the negotiations which had taken place were such she the HMRC had already made up its mind, which might interest motor traders with commercial insurance.

Last week, the RMIF warned business insurance holders working in the motor industry that playing music on their worksites legally could require a number of different licenses.

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