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
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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