At DriveElectric we’re pleased that at last, the HMRC has taken notice of the advice from the fleet industry and announced that electric vehicles will have 0% Benefit in Kind company car tax rates from 2020.
By making this positive change, HMRC are increasing accessibility to electric vehicles (EVs) and enabling the industry to grow. Company cars ultimately feed the used car market, which in turn make electric cars and vans more available and affordable for consumers. This decision to drop company car tax rates for zero emissions vehicles from HMRC could kick start a pure EV uptake.
Now is the time for auto manufacturers to provide vehicles at the right price so the industry can take full advantage of this incentive.
From our research we know that the infrastructure for charging is not an issue for the majority of prospective electric car and van users who can charge at home. Because most EVs only require one daily charge range anxiety is now a thing of the past.
Finally, EV availability is a myth. We are ready and look forward to the demand for EVs from companies and business owners from 2020.
BiK? What’s that?
If you’re not a company car driver you may not have come across BiK before. Benefit-in-kind (BIK) are perks given by employers that are not included in the employees salary. One of the most common taxable benefit-in-kind perk is the use of a company car.
A company car is considered to be a taxable perk and results in the owner of the vehicle paying a benefit-in-kind tax value. The amount of BIK tax you’ll pay will be broken down into certain pay brackets which consider the environmental impact of the vehicle, namely the amount of CO2 emissions the car releases. As pure electric vehicles have no tailpipe emissions they fall into the lowest bracket of BiK tax, so company car drivers could save significantly each month by switching to an EV.