Diesel company car drivers have been expecting company car tax to fall in April 2016 when the 3% addition to the standard percentage was due to disappear. Concerns over rising levels of nitrogen oxides in UK cities has made diesel an obvious target for the Chancellor, so the 3% diesel supplement will now be retained from April 2016 to April 2021 as part of the Finance Bill 2016. This breaks a previous commitment from the government to provide a four year window of certainty on taxation to help fleet and driver decision making.

Diesel sales have been rising year on year and inevitably the air quality in cities has fallen as a result. The introduction of stricter emission standards and real-life on road testing are still some way off so the government feels that something needs to be done sooner to reduce diesel emissions .  However this measure is unlikely to deter fleets from continuing with diesel. Drivers who were about to order a diesel need to check the revised calculations on this website, and perhaps make a few comparisons. We have already had a few visitors complain that the tax on the car they were considering has shot up since they used the tax calculator on 24th November.