THE APRIL 2020 ROAD TAX INCREASE AND HOW IT WILL AFFECT YOU?
Vehicle Excise Duty (VED), also know as road tax or car tax will be going up for all new cars registered from on or from 1st April 2020. The reason this increase is happening is due to the changes in emission standards and testing procedures from NEDC (New European Driving Cycle), which has been in place since 1990 to the new WLTP (Worldwide Harmonised Light Testing Procedure), which is a much stricter testing procedure and therefore, the official emissions figures that vehicle tax was based on are going up.
These changes will affect both personal car tax and Benefit in Kind (BIK) tax on company cars.
HOW ROAD TAX IS CALCULATED?
Your vehicle road tax is calculated based on your vehicles CO2 emissions. Larger engines usually generate more CO2 and therefore you will pay more tax on them. This information will all be staying the same, but what has been changed is how CO2 emissions are measured, which is where WLTP has come into play.
WLTP testing takes into account:
WHAT THIS MEANS FOR BUSINESS USERS?
The tax changes will also impact Business Uses and the Benefit in Kind (BIK) company tax for company cars for vehicles registered on or from 6th April 2020.
This is the perfect time for you to reassess the options available to you to help you avoid the increase. Over the last year company car drivers have often opted for an Electric vehicle or a lower CO2 emission one in the Plug-in Hybrids. Electric vehicles will be charged at 0% BIK rate, with the plug-in hybrids not far off this, making these cars a strong company car choice.
HOW YOU CAN BEAT THE TAX INCREASE?
The best way to beat the tax increase is simply to buy a new car on or before March 31st and ensure its registered ahead of the tax increase to avoid paying possible hundreds more in VED tax. At Sytner BMW our BMWs have been built inline with the latest WLTP procedures to ensure they are running as efficiently as possible. Take advantage of our fantastic offers available until March 31st.