WLTP - after just getting through GDPR, we have yet another set of initials to consider - but what do they mean to your company? Moreover, do you know what it could cost your business?
WLTP (Worldwide Harmonised Light Vehicle Test Procedure) is the new regime by which all motor manufacturers have to test their vehicles to give customers more realistic emissions and miles per gallon data.
Great, I hear you say! Manufacturers' brochures have never been realistic in the miles per gallon. That is the good news. But, and there is always a but, this will also mean that for businesses the P11D value will increase on many vehicles and the BIK (Benefit In Kind) percentage will increase along with National Insurance Contributions. This will be yet another hidden cost that businesses will have to bear.
We have all read in the press how there has been a huge swing from diesel to petrol but is this really a good thing. The Government's stance has been 'woolly' over this at best, in that they have not exactly has been giving a clear message.
Businesses used to have a clear choice with lower mileage drivers taking petrol and higher mileage people taking diesel - It was simple maths. However, over the last two years the economics of running company cars has had a complete turnaround with the introduction of smaller more efficient petrol engines and the proliferation of hybrid, plug-in hybrid and electric vehicles.
The 'cherry on the cake' will be the introduction of WLTP. The correct choice of company vehicles over the next few years will be crucial for companies. Granted we all accept that Downing Street has been rather busy with Brexit. However, for the first time in many years businesses are not able to predict the taxable costs of running company cars over the coming years simply because HMRC has not confirmed anything.
OK, wise guys, are you saying you have the answers? No we are not - but we can shine a light on the subject and highlight the areas that businesses should be concerned about and with an enhanced knowledge could possibly reduce their overall costs. This does not have to be a 'dark art'.
Spirit Hyundai are gathering experts from the industry for an informal evening to be held at Franklins Gardens, home of Northampton Saints. We will be covering many aspects of running company cars, be it one or 101. Especially taxation.
If you would like to attend this event contact Steve Robinson on 01604 417850 or email firstname.lastname@example.org to reserve a place.