TAX: ONCE THE FRIEND OF DIESEL

There’s no getting away from some form of vehicle tax, whether you’re a private or fleet driver, and a good chunk of it is C02 emissions based. Vehicle excise duty (VED) applies to all cars and was first introduced in 2001, split between 13 bands. In 2010, buyers of new cars also incurred a first-year ‘showroom tax’, which buyers of sub-130g/km vehicles could avoid. In 2017, this changed, with only zero-emissions cars exempt from paying VED.

Company car drivers are liable for benefit in kind, a tax based on a calculation using a car’s C02 emissions, its P11D value and the driver’s income tax rate. Diesels have fared well historically, due to their lower C02 emissions versus petrol-engined cars. But in recent years, diesels have attracted a 4% surcharge, unless they meet RDE2 emissions standards.