In 2021 22 they will attract a bik rate of only one per cent.
Electric cars company car tax 2020.
Learn more about installing workplace ev charging.
Cars registered from april 6 2020.
Pure electric cars will not be subject to any benefit in kind tax at all for 2020 21 regardless of when the car was registered.
As a milestone decision this is the first opportunity for company cars to be taxed at 0 as a benefit in kind bik helping businesses make the transition to zero emission vehicles and a potentially emission free future.
The annual company car tax in 2020 would be 20000 x 10 x 20 which is 400.
Introduced in 2002 company car tax applies to cars bought by employers for their employees private use.
Earlier this year the government revealed electric vehicles will be exempt from company car tax in the 2020 21 tax year.
The government says that company car drivers choosing a pure electric vehicle will pay no benefit in kind bik tax in 2020 21.
2020 21 company car tax for electric vehicles drivers of electric company cars will not be subject to bik tax from april 2020 changes in emissions regulations has resulted in the removal of bik benefit in kind tax on employees who drive evs electric vehicles as a company car.
How does the electric car tax credit work.
Battery electric and plug in hybrid vehicles with co2 emissions below 50 g km are currently eligible for 100 write down in the first year.
For cars newly registered from 6 april 2020 the majority of company car tax rates will be reduced by two percentage points.
The new company car tax band tables for 2020 to 2023 is set out below.
With the recent change of bik rates in april 2020 all bevs pay no company car tax in 2020 21 just 1 in 2021 22 and 2 in 2022 23 a further increased uptake of fully electric company cars is to be expected.
As with car tax and company car tax the rate at which a company can write down the value of company vehicles is based on its co2 emissions.
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Electric cars are exempt from vehicle excise duty otherwise known as road tax and for the 2020 21 financial year beginning 6 april 2020 they re exempt from company car tax too.
Therefore for a pure electric vehicle with zero tailpipe emissions company car drivers will be taxed at 0 and pay no tax on the benefit in kind bik at all.
