Company car tax

The percentage rates for 2019/20 were announced and show that in April 2019 zero emission and plug-in hybrids below 51 g CO2/km will be taxed at 16% of list price. Tax revenues from company cars will therefore hold up even if there is a big move towards Ultra Low Emission Vehicles. The figures for the next four years show that a 120 g/km car, once considered to be the pinnacle of efficiency, will rise from 17% in 2014/15 to 28% in 2019/20. This amounts to a 65% increase alone. Should the EC make progress in introducing real world emissions testing (commencing 2017 at the earliest) we could also see the tested figure on some new cars rise significantly. This will amplify the increase on new cars, especially on the small engine, highly test efficient sub 120 g/km vehicles.

Fuel Benefit charge

From April 2016 the car and van fuel benefit multipliers will rise by RPI. We looked at the The Office for National Statistics to see what this was running at only to find that RPI does "not to meet the required standard for designation as National Statistics". It would be around 1.1% though the new version called RPIJ was just 0.5% in the year to January thanks to falling fuel prices. 

Van Benefit charge

This will also rise by RPI from 6th April 2016.

Vehicle Excise Duty (VED)

There have been some small changes with the cars above 165 g/km rising by £5 from 1st April 2015.

Fuel Duty

No change. The Chancellor made much of the fact that he was cancelling the "planned" rise in September of 0.54p per litre.