Zero Benefit in Kind (BIK) on Electric Cars

on January 22, 2020

Zero Benefit in Kind for Electric Cars

Yes that correct!!! No tax for you or your Company when you buy an electric car after April 2020. Those who choose pure electric models will pay zero company car tax for the year from April 2020, one per cent tax from April 2021 and two per cent Benefit in Kind (BIK) from April 2022, Appropriate percentages beyond 2022-23 remain under review and will be announced at future fiscal events the Government confirmed. That is still greater than the current 40% for high income owners. The table below underlines BIK rates payable for cars registered after April 6, 2020

Company Car Tax BIK Rates April 2019 to March 2023
Table shows BIK rates for models registered before 6th April 2020, based on official NEDC CO2 figures.
Vehicle CO2 (g/km)	Electric range (miles)	FY 2019-20 %BIK Rate		FY 2020-21 %BIK Rate		FY 2021-22 %BIK Rate		FY 2022-23 %BIK Rate
Vehicle CO2 (g/km)	Electric range (miles)	Petrol, Electric, RDE2 Diesel**	Non- RDE2 Diesel**	Petrol, Electric, RDE2 Diesel**	Non- RDE2 Diesel**	Petrol, Electric, RDE2 Diesel**	Non- RDE2 Diesel**	Petrol, Electric, RDE2 Diesel**	Non- RDE2 Diesel**
0		16		0		1		2
1-50	130+	16		2		2		2
1-50	70-129	16		5		5		5
1-50	40-69	16		8		8		8
1-50	30-39	16		12		12		12
1-50	<30	16		14		14		14
51-54		19		15		15		15
55-59		19		16		16		16
60-64		19		17		17		17
65-69		19		18		18		18
70-74		19		19		19		19
75		19		20		20		20
76-79		22	26	20	24	20	24	20	24
80-84		22	26	21	25	21	25	21	25
85-89		22	26	22	26	22	26	22	26
90-94		22	26	23	27	23	27	23	27
95-99		23	27	24	28	24	28	24	28
100-104		24	28	25	29	25	29	25	29
105-109		25	29	26	30	26	30	26	30
110-114		26	30	27	31	27	31	27	31
115-119		27	31	28	32	28	32	28	32
120-124		28	32	29	33	29	33	29	33
125-129		29	33	30	34	30	34	30	34
130-134		30	34	31	35	31	35	31	35
135-139		31	35	32	36	32	36	32	36
140-144		32	36	33	37	33	37	33	37
145-149		33	37	34	37	34	37	34	37
150-154		34	37	35	37	35	37	35	37
155-159		35	37	36	37	36	37	36	37
160-164		36	37	37	37	37	37	37	37
165+		37	37	37	37	37	37	37	37

** Rate applies to diesel vehicles not meeting the RDE2 standard. For diesel-hybrids, the Non-RDE2 4% diesel surcharge does not apply. All BIK rates apply to cars registered since 1998. Source: HMRC 2019

The 0% rate will also apply to company cars registered from April 6, 2020, with emissions from 1-50g/km and a pure electric mile range of 130 miles or more.

In addition to the personal benefits business owners will also have great benefits in considering Electric cars for pooled or fleet vehicles. Come and speak to us today on how you can best use this relief and do your little bit for the environment at the same time.

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Zero Benefit in Kind (BIK) on Electric Cars

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