Fleet and company car driver demand for plug-in hybrid and zero emission electric vehicles is expected to increase with the arrival of the all-new Worldwide harmonised Light vehicles Test Procedure (WLTP) due to being the least affected by potential increases in motoring taxes.

This is according to a new white paper ‘Real World Driving Emissions’ published by Puddy Vehicle Solutions (PVS) to provide fleet decision-makers with insight into how WLTP and the related Real Driving Emissions test procedure will impact on car CO2 emissions and thus company car benefit-in-kind tax, Vehicle Excise Duty and capital allowances, which are all based on CO2 figures, as well as fuel economy. Vehicles are on average around 20% more inefficient under WLTP testing.

PVS founder Marcus Puddy, who has a 30-year fleet industry career behind him, believes many fleet managers - and consequently company car drivers - remain in the dark about the potential impact of WLTP and RDE on vehicle choice lists.
As a result, making the ‘wrong’ car choice could land employers and employees with tax bills significantly higher than currently.

Mr Puddy said: “Company car drivers are unaware of the implications of WLTP on their benefit-in-kind tax bills because, in many cases, fleet decision-makers have not told them about the impact of the new testing regime. 

Fleet chiefs must get to grips with WLTP and disseminate that information to drivers, otherwise they could be in for a major shock when they change their company car.

Employees that are choosing new company cars now and over the coming two years will almost inevitably see their benefit-in-kind tax burden rise. However, by making careful choices they can minimise any increase.”

(‘Real World Driving Emissions’ white paper available at: https://www.puddyvsolutions.co.uk/help-guidance/