A new emissions standard has changed the way in which diesel company cars are taxed.
From 6 April 2018 the diesel supplement, relating to the car benefit and the car fuel benefit charge, increased from 3 per cent to 4 per cent for all diesel cars that are not certified to meet the Real Driving Emissions 2 (RDE2) standard for nitrogen oxide emissions.
The Certificate of Conformity available from the vehicle’s manufacturer will confirm whether the car is RDE2 (also known as Euro 6d) compliant. Although it is not expected that there will be any cars on the market that meet the RDE2 standard prior to 2019/20, there may be a few.
The diesel supplement will continue to apply to those cars propelled solely by diesel and registered on or after 1 January 1998, which do not have a registered Nitrogen Oxide (NOx) emissions value. It will also apply to models registered on or after 1 January 1998, which have a registered NOx emissions value that exceeds the RDE2 standard.
To report a diesel company car which is RDE2 compliant, for tax year 2018 to 2019 employers are advised to select ‘Fuel Type A’. The vehicle tax rates can be found here.
