Pay No Company Car Tax On Electric Cars in 2020/21
If you’re looking to upgrade your company car there never has been a better time to switch to an electric vehicle, find out why in our latest blog…
The Government have recently stated that company car drivers who choose to drive an electric car will pay no Benefit-In-Kind (BIK) tax in 2020/21. HM Treasury say that for cars registered from 6th April 2020, most company car tax rates will reduce by 2% meaning that for a 100% electric vehicle with zero emissions, this will drop to 0%, therefore company car drivers will pay no BIK tax at all.
These rates are also applicable to already existing company car drivers who already drive 100% electric vehicles which were registered prior to 6th April 2020. So, for those drivers who were looking forward to a reduced rate of 2%, they can now enjoy 0% tax in 2020/21. The 0% BIK tax also applies to company cars registered from 6th April 2020 with emissions from 1-50g/km and with a 100% electric range of 130 miles or more. In 2021/22 both fully electric cars with zero emissions and emissions from 1-50g/km will rise to 1% followed by an increase to 2% BIK tax in 2022/23 (please see both tables below for a more detailed breakdown).
|
Cars first registered before 6 April 2020 |
|
|
|
|
|
CO2 (g/km) |
Electric range (miles) |
2020-21 (%) |
2021-22 (%) |
2022-23 (%) |
|
0 |
N/A |
0 |
1 |
2 |
|
1-50 |
>130 |
2 |
2 |
2 |
|
1-50 |
70-129 |
5 |
5 |
5 |
|
1-50 |
40-69 |
8 |
8 |
8 |
|
1-50 |
30-39 |
12 |
12 |
12 |
|
1-50 |
<30 |
14 |
14 |
14 |
|
51-54 |
|
15 |
15 |
15 |
|
55-59 |
|
16 |
16 |
16 |
|
60-64 |
|
17 |
17 |
17 |
|
65-69 |
|
18 |
18 |
18 |
|
70-74 |
|
19 |
19 |
19 |
|
75-79 |
|
20 |
20 |
20 |
|
80-84 |
|
21 |
21 |
21 |
|
85-89 |
|
22 |
22 |
22 |
|
90-94 |
|
23 |
23 |
23 |
|
95-99 |
|
24 |
24 |
24 |
|
100-104 |
|
25 |
25 |
25 |
|
105-109 |
|
26 |
26 |
26 |
|
110-114 |
|
27 |
27 |
27 |
|
115-119 |
|
28 |
28 |
28 |
|
120-124 |
|
29 |
29 |
29 |
|
125-129 |
|
30 |
30 |
30 |
|
130-134 |
|
31 |
31 |
31 |
|
135-139 |
|
32 |
32 |
32 |
|
140-144 |
|
33 |
33 |
33 |
|
145-149 |
|
34 |
34 |
34 |
|
150-154 |
|
35 |
35 |
35 |
|
155-159 |
|
36 |
36 |
36 |
|
160+ |
|
37 |
37 |
37 |
* Add 4% for diesels up to a maximum of 37% (unless RDE2 compliant). Diesel plug-in hybrids are classed as alternative fuel vehicles, so the 4% diesel supplement does not apply to these vehicles irrespective of RDE2 compliance.
|
Cars first registered from 6 April 2020 |
|
|
|
|
|
CO2 (g/km) |
Electric range (miles) |
2020-21 (%) |
2021-22 (%) |
2022-23 (%) |
|
0 |
N/A |
0 |
1 |
2 |
|
1-50 |
>130 |
0 |
1 |
2 |
|
1-50 |
70-129 |
3 |
4 |
5 |
|
1-50 |
40-69 |
6 |
7 |
8 |
|
1-50 |
30-39 |
10 |
11 |
12 |
|
1-50 |
<30 |
12 |
13 |
14 |
|
51-54 |
|
13 |
14 |
15 |
|
55-59 |
|
14 |
15 |
16 |
|
60-64 |
|
15 |
16 |
17 |
|
65-69 |
|
16 |
17 |
18 |
|
70-74 |
|
17 |
18 |
19 |
|
75-79 |
|
18 |
19 |
20 |
|
80-84 |
|
19 |
20 |
21 |
|
85-89 |
|
20 |
21 |
22 |
|
90-94 |
|
21 |
22 |
23 |
|
95-99 |
|
22 |
23 |
24 |
|
100-104 |
|
23 |
24 |
25 |
|
105-109 |
|
24 |
25 |
26 |
|
110-114 |
|
25 |
26 |
27 |
|
115-119 |
|
26 |
27 |
28 |
|
120-124 |
|
27 |
28 |
29 |
|
125-129 |
|
28 |
29 |
30 |
|
130-134 |
|
29 |
30 |
31 |
|
135-139 |
|
30 |
31 |
32 |
|
140-144 |
|
31 |
32 |
33 |
|
145-149 |
|
32 |
33 |
34 |
|
150-154 |
|
33 |
34 |
35 |
|
155-159 |
|
34 |
35 |
36 |
|
160-164 |
|
35 |
36 |
37 |
|
165-169 |
|
36 |
37 |
37 |
|
170+ |
|
37 |
37 |
37 |
Tables from Fleet News
* Add 4% for diesels up to a maximum of 37% (unless RDE2 compliant). Diesel plug-in hybrids are classed as alternative fuel vehicles, so the 4% diesel supplement does not apply to these vehicles irrespective of RDE2 compliance.
At Pulman we currently have the Volkswagen e-Golf available on Business Contract Hire. The e-Golf is full of futuristic and quality features including electronic engine sound generator, Navigation System, Parking distance control for front and rear, Car-Net App-Connect & VW Media, Adaptive Cruise Control and much more!
If you’re a business looking to upgrade your company car range to electric, contact us today to find out more about the e-Golf.
Upcoming models across the Pulman brands include the Volkswagen ID.3 1st Edition as well as other models from the electric ID. family which Volkswagen will be revealing another two brand new vehicles between 2020 and 2022. New electric models from SKODA include the CITIGOe iV which is expected to be on sale from early 2020 as well as a plug-in hybrid version of the SUPERB, named the SUPERB iV. New electric models from SEAT include the 100% electric Mii and CUPRA will be introducing the CUPRA Tavascan, which will be revealed at the Frankfurt Motor Show this week; the Tavascan will join the CUPRA Formentor hybrid in the electric range.