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The move to the new WLTP emissions testing system introduced from 1 April 2020 has led to an average car CO2 increase of 19.7%, according to Cap HPI, leading to average company car benefit-in-kind increases of £714 per year.

The company said that MPVs, upper medium models and superminis saw the biggest increases in BiK, rising by 3.5%, 3.3£ and 3.2% respectively, while at the other end of the scale, luxury executive models and supercars didn’t rise at all, as they were already at the top-end of the BiK scale.

Petrol hybrids rose by the largest percentage, up by 4.1% in BiK payments, while petrol and diesel were up by 2.5% and 2.5%. Petrol and diesel PHEVs dropped 5.0% and 5.5% respectively.

Average CO2 figures are up from 135g/km to 161g/km, according to the data expert. The Government has given company car drivers a two-band allowance on company car BiK to compensate for the change, which equates to a maximum of 14g/km depending on the model.

Jon Clay Cap HPI“The combination of the introduction of WLTP and a new tax regime aimed at encouraging private drivers and fleets to make greener motoring choices has driven up costs across the board,” said Jonathan Clay, head of vehicle identification at Cap HPI. “But it’s also clear that some sectors are more affected than others, which will undoubtedly drive a change in the shape of the UK car parc.”

VED rates also rise as a result of the switch to WLTP, which is designed to give a more real-world verdict on vehicle fuel economy and emissions figures. Cap HPI said that VED has risen by £546 on large executive models, with executive cars seeing the biggest rise, followed by executive and MPV models.

The company also warned that almost half of models move across different bands if optional extras are fitted, with 49% potentially changing BiK band and 41% changing VED band.

 

 

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