HMRC has confirmed that levels of company car tax already charged will not be affected even if CO2 figures are found to be incorrect.

There will be no requirement for employers to resubmit P11Ds because the legislation states the calculation should be based on the CO2 figures given on the relevant approval certificate. Therefore, HMRC cannot create a retrospective tax charge.

However, it has also been reported that CO2 levels are unlikely to be affected by the rigging scandal because Volkswagen’s cheat device, estimated to have been fitted in 1.2 million VW, Audi, Seat and Skoda diesel vehicles in the UK, lowers the reading of nitrogen oxide (NOx) rather than carbon emissions.