Updates to Company Car Tax to arrive in April 2020

Updates to Company Car Tax to arrive in April 2020

17 October 2018 | Nathan | 1 min read

What is WLTP?

From 06 April 2020, the way in which cars will be measured for company car tax purposes and Vehicle Excise Duty will change. The government has proposed to switch over to the World Light-duty Test Procedure (WLTP) for company car tax alongside the previously announced Vehicle Excise Duty change, moving away from the current NEDC (New European Driving Cycle) measurement.

WLTP has been designed to more accurately reflect the likely fuel consumption of vehicles in real-world conditions, although the government does recognise this could be influenced by an individual’s driving style and prevailing driving conditions.

WLTP is a new way of measuring the emissions and fuel consumption of cars. The existing NEDC method was designed in the eighties and has become increasingly outdated, the new WLTP is based on real driving data to better match on-road performance.

There are four parts to the WLTP driving cycle, all having different average speeds covering low, medium, high and extra high. Each part of the driving cycle contains different driving phases such as stops, acceleration and braking.

Each powertrain configuration will be tested with for the car’s lightest (most economical) and heaviest (least economical) version.

What is RDE?

The Real Driving Emissions test (RDE) measures emission pollutants, such as NOx, that cars produce while being driven on the road. Since September 2017 all new types of cars have to be tested for Real Driving Emissions (RDE). This is done using portable emissions (PEMS) testing equipment over real roads.

The target is 80 mg/km NOx. Under Step 1 cars are allowed to go up to 210% of this figure and under Step 2 (RDE2) cars must be within 150% (ie 120mg NOx) by 2020.

In the 2017 Budget, the Government announced from April 2018 that it would introduce an additional 1% surcharge for diesel vehicles that do not meet RDE 2 regulations. However, RDE 2 certification isn't possible until 2020, so all diesel cars will carry a 4% surcharge until that date.

The changes to commercial car tax come at a time where consumers are more environmentally conscience and the UK Government aims to reach new low-level C02 emissions over the next coming years. Now might be the time to switch to electric vehicles, with the Mercedes eVito, Renault Kangoo electric, and the Nissan e-NV00 vans proving to be in demand for commercial fleet van leasing. If you're looking for an electric car, then the Nissan leaf is a popular choice or the sought-after Renault Zoe.


Am I Eligible?

We work in partnership with many of the UK’s leading van leasing, car leasing, contract hire and finance leasing funding companies in order to provide the most competitive rates and offer you the best leasing deals possible. Our guide to eligibility will help you understand the various requirements for establishing a vehicle finance agreement.

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Achieving the best van leasing deals and the best car leasing deals has become a key consideration in the work we do, so you can get the best leasing deals. Our process is built to ensure we accurately and efficiently identify your needs and requirements, achieve the best finance deal for you, apply for finance on your behalf and provide you with the quickest delivery possible.

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At Commercial Vehicle Contracts, we ensure that every aspect of the car leasing process and van leasing process is seamlessly undertaken with full management on your behalf, meaning you can sit back and relax with the peace of mind that your chosen vehicle will arrive at your desired address matching your required needs.

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Basic List Price
Monthly Rental
Engine and Drive Train
Transmission Type
Engine Size
Engine Configuration
Fuel Type
Fuel Delivery Type
Euro Emissions Standard
Electric Range
Combined (WLTP)
Fuel Consumption
Combined (WLTP)
Combined (NEDC)
Maximum Speed
0 to 60 mph
0 to 62 mph
Power (BHP)
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Power (KW)
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Boot Capacity
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Max Braked Towing Weight
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Body Style
Insurance Group
RFL Rate
Front Brakes
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Standard Front Tyre Size
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Standard Spare Tyre Size