Fantastic news for company car drivers as the Government announces those choosing a pure electric vehicle will pay no benefit-in-kind (BIK) tax in 2020/21!
HM Treasury has binned the previously published BIK rates and has instead created two new BIK Tables, one for those driving a company car registered after April 6th 2020 and one for those driving a company car registered before. As a result, company car drivers who have pure electric vehicles with zero tailpipe emissions will be taxed at 0%, paying no BIK tax at all!
This zero percentage rate is extended to company car drivers in pure electric vehicles registered prior to April 6th 2020 and the rate will also apply to company cars registered from April 6th 2020 with emissions from 1-50g/km and a pure electric mile range of 130 miles or more.
These rates are set to increase to 1% in 2012/22 and to 2% in 2022/23 and from 2023/24 fleets will have one BIK tax table again as the rates are realigned.
The Government has said that it aims to announce appropriate percentages at least two years ahead of implementation to provide certainty for employers, employees and fleet operators.
You can find the full BIK tables below. How will the new figures affect your next company car choice? Join in the conversation on our Facebook.