Taking action on WLTP

The government is reviewing the impact that the Worldwide harmonised Light vehicles Test Procedure (WLTP) will have on Company Car Tax (CCT) and Vehicle Excise Duty (VED) when it is implemented from April 2020.

A new, more accurate testing procedure, WLTP is expected to increase most cars’ reported CO2 figures by 10-20%, having an inflationary impact on emissions-based CO2 taxes like CCT and VED. Through its consultation, the government has been seeking more information on the impact of WLTP on CO2 emissions and how it should adjust VED and CCT. 

The BVRLA is urging members, their customers, employees and drivers to contact their local MP urgently about WLTP. Choose 'How can you help?' for details about how to write to your MP or choose 'Share your story' to provide a WLTP case study to support the BVRLA's campaign. 

 

How can you help?

Fleet industry suppliers, employers and drivers need to come together and send a clear message to government that a simple, fair and proportionate CCT and VED regime are vital tools in tackling climate change and air quality. 

With your help, we can ensure the government hears from a wide range of organisations and individuals. We are urging members, their customers, employees and drivers to contact their local MP urgently, asking them to contact ministers in the Treasury and Transport teams. Your voice as a constituent or local business matters to MPs.

It is quick and easy to find out who is your local MP and how to contact them using the Parliament.uk website. You can then either send your own message or use the suggested text we have provided to write to your MP about WLTP. Please select the most appropriate description below to find out more.

I am a driver

Company car drivers operate the newest, cleanest and safest vehicles on UK roads. There are more than 960,000 of them in the UK and they have seen their tax bill rise by an average of £1,100, or 56%, since 2013.

Your opinion counts!

Below is a set of suggested text you can copy and use to email your local MP.  

“As a company car driver, I am concerned about the potential impact WLTP could have on my tax bill. It is not fair that drivers choosing a new car from April 2020 could face an increased company car tax bill compared to an identical model chosen before this date.

The government needs to adjust company car tax bands to allow for the increase in WLTP-based CO2 figures. If it doesn’t, I will be more likely to take a cash allowance from my employer instead and use an existing household car, which will be older and more polluting than a company-provided vehicle.

As my local MP I ask you to speak with or forward my email to ministers in the Treasury and the Transport departments as a matter of urgency and before the Spring Statement 2019.

 

I look forward to hearing from you.”

I am an employer

Around 60% of company car tax payers are ‘job need’ drivers – people that need their car to perform their daily role. Many of these are basic rate Income Tax payers.

Company fleets are leading the way in the drive towards lower emissions, but the steady increase in the tax burden borne by drivers is putting this progress at risk. More employers and employees are now choosing to forego the company car in favour of a company-provided ‘cash-allowance’, which gives staff the freedom to finance their own car via a personal lease or pocket the money and use an existing household car for business (also known as grey fleet).

Your opinion counts!

Below is a set of suggested text you can copy and use to email your local MP.  

“As an employer, I am concerned about the potential impact WLTP could have on my fleet. It is not fair that our ‘job need’ drivers should face an increased company car tax bill simply because of a change in the way CO2 emissions are measured.

If company car tax bills continue to rise, we will see more staff taking the cash allowance option, which will result in many of them driving older, more polluting privately-owned vehicles.

As a business in your constituency I would also be happy to meet with you or urge you consider meeting with the BVRLA who are our trade body, campaigning on this important issue. They have also provided a response to the Treasury on this issue, which may be of interest to you.

 

I look forward to hearing from you.”

I am from the fleet industry

Over the last twenty years, the fleet sector has embraced the introduction of carbon-based motoring taxes and used the incentives they provide to deliver a sustained and substantial reduction in average CO2 emissions. Using the company car tax regime, fleets have reduced their carbon footprints and embraced ultra-low emission technology.

This progress is now at risk. The fleet sector has already seen its company car tax burden rise by £1.06 billion, or 58% since 2013. If left un-adjusted the introduction of a WLTP-based Company Car Tax regime in April 2020 would see this burden rise by a further £100m in the 2020-21 tax year and £400m in 2023-24.

Your opinion counts!

Below is a set of suggested text you can copy and use to email your local MP.  

“As a fleet industry stakeholder, I am concerned about the potential impact WLTP could have on the sector.

A fair, consistent and well-signposted Company Car Tax regime is one of the government’s most powerful tools in influencing the behaviour of vehicle manufacturers, fleet operators and drivers.

If fleets are hit with this unfair increase in their tax burden, we are likely to see more employers dropping their company car schemes and thereby taking less responsibility for the vehicles and modes of transport their staff use.

This result in fewer new car registrations and a slower transition to zero-emission motoring.

As a business in your constituency I would also be happy to meet with you or urge you consider meeting with the BVRLA who are our trade body, campaigning on this important issue. They have also provided a response to the Treasury on this issue, which may be of interest to you.

 

I look forward to hearing from you.”

I am from a rental company

The rental sector supplies some of the very cleanest and newest vehicles on the UK’s roads. Last year, 92% of BVRLA rental members’ car fleets were already Euro 6 standard.

The rental sector is a price-sensitive market, with any change in vehicle excise duty (VED) having a significant impact on operating margins. The rental business model revolves around a frequent fleet cycle with vehicles typically replaced every six to nine months. For many operators this means that potential VED increases will be felt twice every year. As a result, some rental companies are choosing to reduce the frequency of their fleet replacement. This has a knock-on impact for the second-hand market which will be deprived of some newer, cleaner vehicles.

BVRLA analysis has shown that WLTP-based VED is likely to cost the rental sector an estimated extra £28 million in 2020/21. 

Your opinion counts!

Below is a set of suggested text you can copy and use to email your local MP.    

“As a representative of a rental company, I am concerned about the potential impact WLTP could have on my sector through increased Vehicle Excise Duty (VED).

A fair, consistent and well-signposted tax regime is one of the government’s most powerful tools in influencing the behaviour of vehicle manufacturers, fleet operators and drivers.

If rental fleets are hit with this unfair increase in their tax burden, consumers and businesses will be deprived of access to newer, cleaner vehicles as many companies will reduce the frequency of their vehicle replacement cycle. This also means that fewer of these greener vehicles will enter the second-hand market.

The overall result will be a reduced number of new car registrations and a slower transition to zero-emission motoring - which is bad for manufacturers, businesses and the environment alike.

As a business in your constituency I would also be happy to meet with you or urge you consider meeting with the BVRLA who are our trade body, campaigning on this important issue. They have also provided a response to the Treasury on this issue, which may be of interest to you.

 

I look forward to hearing from you.”

Share your story

How will the failure to adjust Company Car Tax (CCT) or Vehicle Exercise Duty (VED) for the impact of WLTP-based CO2 increases affect you and/or your company? The BVRLA is keen to capture examples.

Please summarise how a failure to adjust Company Car Tax (CCT) and Vehicle Exercise Duty (VED) for the impact of WLTP-based CO2 increases will affect you or your company.

e.g. Unfair tax increases and/or restriacted vehicle choice for essential users;
More drivers opting out of company car, taking cash allowance and choosing a personal lease with higher CO2 or using an older, more polluting family car;
Close of company car scehem altogether

 


For more information about these changes please visit the WLTP campaign page.

The BVRLA consultation response to the Treasury's WLTP Review can be read in full online.