2018-19 reporting of RDE2-compliant diesel company cars

26 February 2018

HMRC’s Software Developers Support Team (SDST) has provided advice on how to report a diesel car which is RDE2 (Euro 6d) compliant during the 2018/19 tax year.

“From 6 April 2018 the diesel supplement, relating to the car benefit and the car fuel benefit charge, will increase from 3% to 4% for all diesel cars that are not certified to meet the Real Driving Emissions 2 (RDE2) standard.

The Certificate of Conformity available from the manufacturer will confirm whether the car is RDE2 (also known as Euro 6d) compliant.

This change means that the diesel supplement must not be applied when calculating the car benefit and car fuel benefit charge for diesel cars which are RDE2(Euro 6d) compliant.

Although it is not expected that there will be any cars on the market that meet the RDE2 standard prior to 2019/20, there may be a few. The following information provides advice on how to report a diesel car which is RDE2(Euro 6d) compliant during the 2018/19 tax year.

The diesel supplement continues to apply to those cars propelled solely by diesel (not diesel hybrids) and registered on or after 1 January 1998, which do not have a registered Nitrogen Oxide (NOx) emissions value. It will also apply to models registered on or after 1 January 1998, which have a registered NOx emissions value which exceed the RDE2 standard.

Should your 2018/19 software package support the:-

  • calculation of the car and car fuel benefit
  • reporting of 2018/19 in-year P46 car information
  • reporting of end of year information for 2018/19 on forms P11D

we would ask (if possible) that, for the 2018/19 tax year only, you advise customers to use ‘Fuel Type A – All other cars’ when reporting and calculating the cash equivalent for diesel company cars which are RDE2 (Euro 6d)compliant.

If possible, can you also advise customers who have registered to payroll the car and car fuel benefit for an RDE2 (Euro 6d) complaint diesel car to:-

  • Calculate the cash equivalent using the appropriate percentage for ‘Fuel Type A’ and enter this amount in ‘Box 182’ of the Full Payment Submission
  • Enter ‘A’ in ‘Box 177’ of the Full Payment submission
 

Please contact sdsteam@hmrc.gsi.gov.uk if you think that this will cause you any issues.”