As many of you will know VW have been in a bit of hot water lately due to the ‘defeat device’ that had been fitted to a number of vehicles to cheat the American nitrous oxide emissions test. This device changes the way the engine runs during official testing, meaning that UK drivers might find the CO2 emissions on their V5 document is actually lower than the car’s actual emissions.
The Transport Secretary has confirmed that as drivers could not have known about the incorrect CO2 figures they wont be asked to pay higher vehicle excise duty.
Also, HMRC have confirmed that the benefits in kind already calculated and declared on P11D’s wont need to be restated. So, there will be no backdated tax bills. However, it remains to be seen what HMRC will do for later years if the Vehicle Certification Agencies change their official CO2 figures.