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Company Car Tax Bands 2018/2019

Company Car Tax Bands 2018/2019

Company car tax has risen for those who drive a diesel car - unless their vehicle has passed the new RDE2 test.

What are the new emissions tests?

The new emissions test is called the World Harmonised Light Vehicle Test Procedure. For those who pay company car tax the crucial part of this new test is the RDE2 section within it. The RDE2 will test the amount of emissions released in real life driving situations. This differs from the previous NEDC emissions test, as during this test emissions were measured in the laboratory. The old testing method allowed manufacturers to create more favourable test conditions for their vehicle which resulted in a lower emissions rating than would be achieved in real life road conditions. The RDE2 test aims to wipe this kind of practice out.

The RDE2 test has been available since September 2017. At this time, new models and those which had undergone a major facelift were the only vehicles required to take the test. From the initial tests performed, it is expected that on average most cars will see a 22% rise in Co2 figures when moving from the NEDC test to the RDE2 test.

From September 2018, all new cars will need to undergo RDE2 testing. It will take some time to test every new car.

How does the new emissions test affect company car tax?

Company Car Tax ensures a tax is paid on a work benefit, it also incentivises the use of low emission cars as the tax you will pay is related to the amount of Co2 produced by the company car you drive.

View our Latest Green Leasing Deals

From April 2018 the 3% surchase on diesel company cars has been raised to 4%. This new surcharge only applies to diesel cars that have not passed the RDE2 test. If your diesel company car has passed the RDE2 you will not be need to pay a surcharge at all.

The Company Car Tax rates for 2018/2019 can be seen in the table below;

Company Car Tax Bands 2018 - 2019

  Benefit in Kind 2018/2019 (%)   Benefit in Kind 2019/2020 (%)  
Co2 emissions (g/km) Petrol, electric and diesel vehicles with a RDE2 pass certificate Diesel without RDE2 pass certificate Petrol, electric and diesel vehicles with a RDE2 pass certificate Diesel without RDE2 pass certificate
0 13 N/A 16 N/A
1-50 13 17 16 20
51-75 16 20 19 23
76-94 19 23 22 26
95 - 99 20 24 23 27
100 - 104 21 25 24 28
105 - 109 22 26 25 29
110 - 114 23 27 26 30
115 - 119 24 28 27 31
120 - 124 25 29 28 32
125 - 129 26 30 29 33
130 - 134 27 31 30 34
135 - 139 28 32 31 35
140 - 144 29 33 32 36
145 - 149 30 34 33 37
150 - 154 31 35 34 37
155 - 159 32 36 35 37
160 - 164 33 37 36 37
165 - 169 34 37 37 37
170 - 174 35 37 37 37
175 - 179 36 37 37 37
180 + 37 37 37 37

What will the money raised be used for?

The money raised from the increase in the surcharge will be contributed to the Clean Air Fund. This fund is used to finance clean air initiatives such as; park and ride schemes, installing electric charging points, bus priority lanes and improving cycling infrastructure across the country.

Read more: New Nissan Leaf - New Look and New Extended Range

What can I do to keep my company car payments low?

The tax on emission producing vehicles will continue to increase. As you can see from the table above in the 2019/2020 tax year, even zero emissions vehicles wll be subject to tax. To keep your company car payments low, you should choose a car with the lowest possible Co2 emissions, or an electric car if your company is offering this.

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