After the government made minor changes to motoring related costs in the Autumn budget, Pendragon Vehicle Management has broken down what this means for almost one million company car drivers across the UK.

Fuel Duty

Fuel duty will be frozen for a ninth successive year saving the average driver a cumulative £1,000 by April 2020, compared with what they would have paid under the pre-2010 fuel duty escalator.

Fuel Benefit charges

From 6 April 2019 fuel benefit charges will increase in line with the retail price index (RPI) and the van benefit charge will increase in line with the consumer price index (CPI).

Her Majesty's Treasury (Logo)

Personal Allowance (PA) and higher rate threshold



Enhanced Capital Allowances (ECAs) for electric vehicle charge points

The government will extend the ECA for companies investing in electric vehicle charge points to 31 March 2023. This will help achieve the government's ambition for the UK to become a world-leader in the ultra-low emission vehicle market.


Introduction of the Worldwide harmonised Light vehicles Test Procedure (WLTP) - The government will review the impact of WLTP on Vehicle Excise Duty (VED) and company car tax (CCT) to report in the spring. WLTP aims to provide a closer representation of 'real-world' fuel consumption and CO2 emissions.

Our thoughts

"The 2018 budget lacked any detail and substance from an automotive perspective. In the short-term motor taxes continue to increase and outpace employees' increased earnings.  Unfortunately, the £1000 per average driver benefit from frozen fuel duty has been eliminated over this period by significant increases in road fund licences, company car tax, insurance costs and new vehicle list prices. "

Neal Francis, Managing Director, Pendragon Vehicle Management commented:
"Given the continued lack of clarity on motoring taxes and the additional impact of WLTP, the increasing trend away from company cars for higher rate tax payers is likely to continue."

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