Save thousands on your BIK Tax if you drive a Zero Emission Company Car.
Yes, you are reading this correctly, if you drive a full Electric Car from April 2020 you will pay no BIK tax at all, then from April 2021 it will increases to 1%, and then from April 2022 it will be 2%.
When this was last reviewed, the plan was to set the rate at 2% for all Electric Vehicles, but in a drive to get more companies to go electric, a last minute change will really save drivers money.
Let’s look at an example, this is based on a 40% tax payer and the new regime from April 2020;
Tesla Model X
P11d Value – £100,000
CO2 – 0
Monthly BIK tax – £0.00
Land Rover Range Rover Sport 4.4 SDV8 Autobiography Dynamic
P11d Value – £95,000
CO2 – 242 g/km
Monthly BIK tax – £1,118.51
Both of these cars will cost the company a similar amount on Contract Hire/Finance Lease but the driver will save over £1,000 a month in tax. Further savings will be made with fuel cost, servicing and Class 1 NI payments.
So the case for an electric car really looks good now, if you can work with the 150-300 mile range then they really are a viable choice now. In fact, 2% of new vehicles sold in the UK are now pure electric vehicles, and 4,500 more are registered every month.
There are BIK savings to be had on all cars registered from the 6th April 2020, the BIK rate will be 2% less across the range. For more information see the table below.
These are just a few of the other Electric cars on offer, for more information call 0161 406 3936 or email [email protected]
Tesla Model 3
Hyundai Kona Electric
Tesla Model S
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.