Whilst we were all preparing for Christmas and all the associated festivities, a snappily titled document was released by HM Treasury entitled ‘Review of WLTP and Vehicle Taxes’, still can’t believe I missed that one!!
What is the WLTP?
Worldwide Harmonised Light Vehicles Test Procedure. There, I have said it, it’s out in the open.
Current CO2 emissions are based on the ‘New European Driving Cycle’ which has been in place since 1992.
The testing under the WLTP will introduce a new laboratory test for emissions and fuel efficiency to better align reported emissions achieved in the lab with those achieved in real driving conditions, and no doubt seek to prevent manufactures, such a VW, manipulating records emissions.
The aim of the Treasury is to incorporate the new regulations for all cars registered from April 2020.
What does this mean for company car drivers?
It is anticipated that around 50% of cars manufactured will see an increase in the CO2 emissions when the move to the WLTP tests is made.
As company car and fuel benefit is based on CO2 emissions, many drivers changing cars, post April 2020, will see an increase in the tax that they pay for the private use of the company car and fuel.
For more information contact Paul Chappell on 03331 123456
