Employee / Salary Sacrifice
2nd April 2020
WLTP – What you need to know
What is WLTP?
The Worldwide Harmonised Light Vehicle Test Procedure (WLTP) is the new laboratory test for measuring fuel consumption and emissions from cars, taking over from the old lab test called the New European Driving Cycle (NEDC) which was designed in the 1980s and which has become outdated.
WLTP will introduce much more realistic testing conditions based on a number of factors including realistic driving behaviour, temperatures, speeds, and options included on various models. As a result, WLTP will provide a much more accurate basis for calculating a car’s fuel consumption and emissions. This will ensure that lab measurements better reflect the on-road performance of a car. The WLTP CO2 value will be used for tax purposes from April 2020.
How are new cars affected by WLTP?
All new cars are subject to WLTP rather than the older regulations, which means they have been tested more strictly. All new cars’ CO2 values will be determined under WLTP if they are delivered after the 30th March 2020.
Which cars are most affected?
All manufacturers have had to adjust their testing to meet with WLTP requirements and there have been a number of adjustments in CO2 bands as a result, by varying degrees. You can view all the new WLTP rates in our system against the relevant vehicle. As the new tests are stricter on CO2 levels, it could mean a change in Benefit-in-Kind band for cars taken on a salary sacrifice scheme.
Where do I check what the new Benefit-in-Kind rates are?
All the new rates are now in our system and when you prepare a quote the correct BiK for WLTP will automatically show and be included within your net amount.
My car is ordered but won’t be delivered until after April, will there be additional cost?
If your car was ordered using the NEDC rates but will be delivered after April, the tax rate will be based on the WLTP figure which in many cases is likely to be higher meaning a higher company car tax will be due. If you are affected we’ll contact you to discuss your options.
I’ve ordered an electric car, will this affect me?
Electric cars are unaffected by WLTP as they have zero emissions.
We are on hand to help with any queries you have around WLTP, you can speak with our Employee Engagement Team.