Company Car Tax - Diesels

From April 2006, the waiver of the 3% supplement for Euro IV diesel will be withdrawn for all cars registered from January 1, 2006, so the minimum tax level for a diesel will be 18%, although the maximum will remain at 35%.

and

The 2004 Pre-Budget Report announced that from April 2006, the waiver of the 3% supplement for diesel cars meeting Euro IV standards will be withdrawn for all cars registered from 1 January 2006.

In message of Tue, 17 May 2005, SteveM writes

I wouldn't be too concerned about it though. I reckon you will gain more in fuel saving and possibly a lower co2 emission for a modern diesel.

My 1.9TDI Golf costs about 7.5 pence per mile whereas my previous petrol one cost about 10.5 pence per mile.

DF

Generally negated by the higher list price of the diesel car though.

Nah. The higher price of the diesel car is what you pay for the car (a) lasting longer, (b) being more reliable.

If you're a company car driver its usually swapped after either 1 or 3 years, so longer life, and to some degree reliability don't come into it (most cars are pretty reliable when new, and anyway if it does break its not you that pays to fix it.)

I'll be swapping to a petrol car come next renewal, the economics of a diesel no longer add up.

I guess that's true if you're a minion who has no interest in the cost to the company. But it would be different if you were a one-person company.

Longer life would make renewals cost less, either because they would need to happen less often or because the re-sale value would be higher.