Company car tax changes could drive more diesel cars onto the road

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Diesel company cars - lower emissions

(Published 14/10/2015 by Rob Hull)

Despite the current Volkswagen scandal regarding vehicle emissions (luckily I have a MINI), the new car tax rules for next year, will incentivise company car drivers to choose diesel cars over petrol.

The Chancellor revealed in his 2012 Budget, that the 3% Benefit-in-Kind (BIK) surcharge that applied to diesel cars only, due to the higher levels of pollution produced by diesel cars, will be eradicated in April 2016. Wahoo!

For company car drivers, this results in a few advantages:
    • Diesel cars becoming far cheaper to tax
    • Diesel cars being more fuel efficient compared to petrol alternatives
The Government have further announced that all company car Benefit-in-Kind tax rates – both diesel and petrol cars– will increase by 2% at the same time in 2016.

However, it is still recommended that company car drivers also consider hybrid and electric vehicles - although lower emission cars are now more readily available.

If you want to read more, click here.

Lauren George