The amount you pay on your cars tax is changing from the 6th of April 2020, with petrol & diesel vehicles set to cost more to tax on average.
This will set a massive impact on cars for personal use as well as Benefit In Kind for Company cars.
The amount of tax you pay is currently determined by the amount of CO2 emissions your vehicle gives off. Bigger engines tend to give off more CO2, therefore you pay alot more tax on them. How tax is determined is staying the same, its how CO2 emissions are measured that is changing.
The methodology of how emissions has tested has changed from NEDC to WLTP.
WLTP or Worldwide Harmonised Light Vehicle Test Procedure is a much more detailed way of testing your emissions. The tests include:
As the WLTP figures are much more rigorous, therefore have much higher Co2 levels than the NEDC.
From April 2020, the amount of tax you pay will be calculated using the WLTP standards.
These tax changes will also impact benefit in kind (BIK) company tax for company cars.
Those still using company cars can reassess their options to avoid the hit. As electric cars will be charged at £0 in benefit-in-kind, you will see a lot more electric cars on the road, come April.