BROKERS need to be careful when they arrange registration of vehicles in the run up to the WLTP changeover. For the DVLA the changeover happens on April 01 for VED; for HMRC this happens on April 06 for company car tax.
It could mean a business contract hire vehicle has VED related to its WLTP measured emissions, but BIK relating to its NEDC correlated emissions if its registered between the two dates.
The issue is further compounded by lack of data on WLTP CO2 emissions. The BVRLA says its members currently only have accurate CO2, electric mileage range or RDE2 compliance information for around 80% of base (pre-option) models.
With average lead times for cars at around 9-12 weeks from ordering, the BVRLA says the data gap is hindering the leasing sector’s ability to provide accurate quotes on many different vehicles and their various configurations and options.
It’s likely that lease rentals on post April 06 vehicles will be different – giving brokers something of a headache when dealing with customer quotations, along with an increase in CO2 emissions which will affect driver BIK rates.
BVRLA chief executive, Gerry Keaney, explained:
“The introduction of WLTP-based motoring taxes is adding yet another layer of complexity and confusion to a fleet sector that is already having to cope with a deluge of new automotive technology and local authority air quality measures.
“The BVRLA and its members are working with OEMs and third-party data providers to bridge this gap.”
BMW said it was one of the brands that now had data on its full range for CO2 WLTP emissions.
Rob East, BMW’s general manager of corporate sales, said:
“With the BIK tax liability a key consideration for many company car drivers when choosing a new vehicle, it’s imperative that we provide our customers with this information.
“This transparency allows them quickly to make an informed decision as to whether their favoured BMW works for them from a tax point of view. Without WLTP details, they simply have no way of knowing.”
With the continued shortage of reliable data threatening to disrupt the move to April’s new VED and Company Car Tax (CCT) regime, the BVRLA advised brokers to consult with their leaseco providers to assess the impact on vehicle delivery dates.
Ralph Morton is the leading journalist in the leasing broker sector and editor of Broker News, the website which provides information and news for BVRLA-registered leasing brokers. He also writes extensively on the fleet and leasing market in both the UK and Europe.
