Electric Cars Company Benefits

One of the reasons is that they attract low benefit in kind rates and can be a really cost effective option when selecting and then running a new company car.

Electric cars company benefits.

Using the hmrc calculator choose fuel type f for diesel cars that meet the euro 6d standard. If an employer provides an electric car to their employee a taxable benefit in kind will arise. The government says that company car drivers choosing a pure electric vehicle will pay no benefit in kind bik tax in 2020 21. For cars newly registered from 6 april 2020 the majority of company car tax rates will be reduced by two percentage points.

This is the distance the car can go on electric. The savings are especially significant for company car drivers paying a higher rate of tax. The value of this is calculated in the same way as for other company cars 1 with the following differences for pure electric cars. Company car tax on electric cars electric cars are becoming more popular and more accessible as each year goes by.

If your company car has co2 emissions of 1 to 50g km the value of the car is based on its zero emission mileage figure or electric range. The lower appropriate percentages for zero emissions vehicles will apply. Switching to electric company cars can bring many benefits including less bik tax for your employees. This zero rate also applies to hybrid vehicles with emissions from 1 50g km and a pure electric range of over 130 miles.

Employers looking to provide tax efficient company cars in the future should consider electric cars and hybrid models with a good electric range. In its long awaited response to its review of wltp and vehicle taxes. Or you can use hmrc s company car and car fuel benefit calculator if it works in your browser. For employers looking into electric company cars there are now considerable savings to be made.

For company car drivers and fleet operators choosing an electric car from april 2020 there will be zero tax on benefit in kind bik during 2020 2021. This is compared to a maximum of 37 charged on the least co2 efficient vehicles.