A new tool from Cap HPI could help fleets and drivers identify more tax-efficient vehicles.

Cap HPI has added a new flag in its New Vehicle Data (NVD) technical data under alternative fuel qualifying

The DVLA and HMRC recently confirmed that mild hybrids, as well as pure electric and plug-in hybrid vehicles, qualify for the alternative fuel taxation discount for both Vehicle Excise Duty (VED) and Benefit-in-Kind (BiK) – and to help fleets and drivers benefit from reduced taxation, Cap HPI has added a new flag in its New Vehicle Data (NVD) technical data under alternative fuel qualifying. It says the tool flags up more than 1,200 derivatives that meet the requirements set by the Government.

Initially, the DVLA and HMRC ruled that because these vehicles would never be propelled by electric power alone, as it would be in a full hybrid system, they would continue to be taxed for both their VED and BiK as a conventional petrol or diesel engine.

Due to the rule change, there are now several ranges where the mild hybrid variants are being taxed at the lower rate for alternative fuel vehicles, including non-RDE2 (Real Driving Emissions) compliant Diesel models.

More tax-efficient types of diesel vehicle can also be identified through RDE2-certified models. RDE2 diesel cars, which are exempt from the standard 4% BIK diesel surcharge, now account for over 35% of all diesel vehicles on Cap HPI’s database.

Jon Clay, head of vehicle identification at Cap HPI, said it was important that fleets are able to stay on top of the evolving taxation regime.

“We’re able to take this data and discover unique and important insights for our customers that will help them conduct new business even more profitably and provide better options for their customers,” he added.

Other work by Cap HPI has seen a 94% WLTP fill level for cars in its database; the result of ongoing efforts between fleets, dealers, OEMs and government to ensure the data meets a wide range of needs.

The automotive data company said it was the first to roll out a WLTP API in the UK, which gives fleets a solution to manage dynamically configured vehicles, and content collation of new, static values within new vehicle data (NVD).

Cap HPI has also replaced legacy NVD systems and launched new option management and derivative modules. The new systems allow the OEM codes required by WLTP APIs to be captured as an intrinsic part of NVD, making the process more streamlined.

Clay said: “Through a combination of performance management and system improvements, we have increased our data entry productivity by 181%. Further system investments are planned to enable us to continue increasing the quality of our service to ensure our customers have the tools they need.”