BiK changes for Company Car drivers

20.02.2020

The arrival of WLTP emissions testing means that all vehicles registered after the 31st of March 2020 will be taxed according to their full WLTP CO2 emissions. As a result of these changes to emission figures, BiK rates for company car drivers will change, as of 6th April 2020.


What is WLTP?

The Worldwide Harmonised Light-duty Vehicle Test Procedure, or WLTP, was designed to better replicate the kind of driving conditions that are commonplace on actual roads, and produce fuel economy figures that were much more representative. For decades, drivers watched in dismay as their cars failed to return anything like their official mpg ratings and cost hundreds of pounds more in petrol and diesel than expected, all because the NEDC tests did not return realistic results.


How will my business, and drivers, be affected?

As the WLTP test is more stringent, as it is based on real-world driving, official CO2 emissions have risen, which will have the most impact on business users. 

Please see below the potential changes to BiK based on an example of a Volkswagen Passat Saloon SE 2.0TDI Manual.


Costs to the car driver.

Reg date

BiK%

20%

40%

30th March
29%
£132.02
£264.05
6th April
31%
£141.13
£282.26
32%
£145.68
£291.36
33%
£150.23
£300.47


Costs to the business.

Reg date BiK% Class 1a NI
30th March 29% £1,093.15
6th April 31% £1,168.54
32% £1,206.23
33% £1,243.93




Potential additional BiK cost to the driver over 3 years: £983.34

Potential additional NI cost to the business over 3 years: £339.25


To download this information in PDF format please click here - Nick Tawn WLTP flyer - Jan 2020.pdf