Real World Emissions Tests (WLTP) Update
Tuesday, 14. August 2018
As you know, if you read my newsletters, you will know that phase 1 of the exercise has been underway for nearly 12 months. Worldwide harmonised Light vehicles Test Procedures (WLTP) were introduced last September. After the 1st September this year the same Euro 6 rules will apply to all vehicles but only vehicles that have been tested under the new WLTP rules and meet the Euro6 requirements can be sold.
This means that some cars that have only been tested under the old NEDC test procedures can no longer be registered. This meant that we expected a massive surge in the pre-registration and sale of the old model tested cars – it hasn’t happened. The manufacturers and dealers have been canny enough to make sure they weren’t carrying lots of old tested cars and vans meaning that they haven’t been applying massive bonuses as some expected them to do – me included!
Now bear with me because it gets a little confusing. The easy bit concerns the brand new model cars, let’s call them 2019 model cars. They have been re-designed to receive the approval so the CO2 and mpg figures are now more accurate and as a company car driver you will pay benefit in kind tax per the latest CO2 readings.
If you are driving a pre WLTP car they will still be tested and the new CO2 figures declared which, in most cases, are higher than the old NEDC figures. So to avoid sudden increases in BIK tax the revenue came up with a formula to apply to the new figures that will take the readings back to roughly where the old NEDC figures stood, known as the NEDC correlated figures. This will last till 2020.
The complication gets worse when the Real Driving Emissions test (RDE) is introduced from 1st September. This involves equipment attached to new cars to measure emissions and mpg in real world driving conditions as opposed to the WLTP tests which are carried out in laboratory conditions. At the moment the Government has neglected to explain how the RDE tests fit in with the WLTP tests when it comes to all areas of vehicle-related taxation between now and 2020. In fact they haven’t released details relating to taxation post 2020 so anyone looking to take out a lease for a business car could be in for a shock when they receive their tax bill. It’s a disgrace! By Graham Hill
