Vauxhall has been confirmed as the first volume carmaker to achieve full RDE2 compliance across its entire range of diesels. Meeting the new emissions standards, due to come into force in 2021 means company car drivers and business users will benefit from tax savings.
Meeting the second phase of the European Union Real Driving Emissions (RDE2) test will be required for all new diesel vehicles registered after January 2021.
The upshot for you is that any diesel cars that already meet the RDE2 standard are exempt from a 4% minimum surcharge to the Benefit-in-Kind (BIK) company car. And that usefully reduces car tax bills for company drivers, or self-employed subject to BIK.
New tax rules favour plug-ins and EVs
Vauxhall says that, as well as the RDE2-compliant models’ ability to help you save tax, its roll-out of more plug-in hybrids and EVs will also help company car drivers and businesses reduce costs. The Corsa-e attracts 0% company car tax under the latest Government guidelines, rising to 1% the next year and 2% the following year. Electric vehicles were previously taxed at 16% BIK.
Plug-in hybrids are also improved under the latests guidelines. The Grandland X Hybrid’s BIK drops to 10% from 16% from 6 April 2020, which means BIK payments of £54 and £108 per month for 20% and 40% taxpayers.
What this means for you
If you’re a company car driver or business user who pays BIK, then these new rates for RDE2-compliant vehicles are certainly worth taking note of. Although diesel-powered cars are becoming less popular, they can certainly be tax efficient.
The Monthly savings in BIK on a Corsa Elite Nav 1.5D range between £13 and £27 (for 20 and 40% taxpayers), while a Grandland X 5 Business Edition Nav 1.5 Turbo D will save between £17 and £34.
