If you are planning to upgrade your vehicle this year, doing so before 1st April 2020 could save you up to £1,285 in tax.

What is changing?

Vehicle Excise Duty (VED), also known as vehicle tax, is paid annually for most vehicles used on public roads in the United Kingdom. The cost depends on multiple factors including the vehicle's age, fuel type and emissions which are currently measured by the New European Driving Cycle (NEDC), however, this test is outdated. From the 1st April 2020 it will be replaced by the Worldwide Harmonised Light Vehicles Test Procedure (WLTP) which is designed to better reflect real driving conditions and provide a more accurate account of a vehicle’s emissions and fuel economy.

What is WLTP?

The WLTP testing procedure is divided into four parts with different average speeds: low, medium, high and extra high, which each include a variety of driving phases, stops, acceleration and braking phases. Each powertrain configuration is also tested for the car’s lightest (most economical) and heaviest (least economical) version. The test duration will be increased to 30 minutes and cover 23.25 kilometres. Overall, the WLTP procedure will provide a more accurate representation of how vehicles are used on the roads.

How will this affect me?

These changes start on the 1st April for VED (Vehicle Excise Duty or Road Tax) and 6th April for Benefit in Kind on Company Car Tax. The WLTP test is more rigorous and the results are more realistic which could mean an increase in road tax for your new car of up to £1,285.

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