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.

Electric charging point - 0% BIK Tax in 2020/21 for company car drivers

 

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.

Volkswagen e-golf available from Pulman Volkswagen on business contract hire and personal contract hire.

 

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.

To be kept up-to-date with the latest electric news from Pulman follow our social channels:
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