Worldwide Harmonised Light Commercial Vehicle Test Procedure (WLTP) Is Coming!
Overview
Working with a number of businesses large and small it is very apparent that a lot are still unware or unclear as to the implications of the updated WLTP - Worldwide Harmonised Light Commercial Vehicle Test Procedure and the direct impact these changes will have to their company car drivers by way of increased Co2 emissions values and the resultant Benefit in Kind tax charge (BIK).
We are now at the beginning of August (with a deadline of 1st September 2018 for new NEDC2 – Correlated figures to be published and live for all newly registered vehicles) and we still have a sizeable proportion of the UK car market yet to update and confirm new Co2 emissions values.
Impact
Whilst some vehicle manufactures are showing smaller variances to historic ratings and some have published with the new values, a substantial proportion of vehicles are still to have new NEDC2 values confirmed and as such are not currently available to order (Unless they can be delivered before the 1st September where existing Co2 values are still valid).
The Co2 emissions values for the NEDC2 – Correlated figures in place for the period 1st September to April 2020 which had previously been assumed to be closely aligned to the old NEDC Co2 emissions values are in some cases showing material increases. These values are now showing increases averaging 15%, which typically correlates to a 2 band jump in Co2 and a hefty increase in BIK for company car drivers.
With company cars typically being held for around 4 years it has never been more important to make sure your company car policy is current and still offering excellent value.
Mitigating The Impact
We are seeing significant numbers of company car drivers move out of the company cars and choosing to take the cash option instead, often via the provision of tax efficient cash. This does not always offer a problem free route to doing business mileage but can with the correct infrastructure in place offer a very cost-effective option to company car drivers.
More Information
Please see our info-graphic above which gives a simple overview of the changes taking place and contact Let’s Talk Fleet if you need any support, either with reviewing your car policy/vehicle choice or would like to discuss options which lower the cost of car provision for both the business and company car driver.
If you have any other questions you can Contact us at LetsTalk Fleet