Good news for companies choosing to drive purely electric vehicles – you will not have to pay any benefit-in-kind (BIK) tax in 2020/21! This comes as a long-awaited response to the review of WLTP and vehicle taxes, where the HM Treasury has, in fact, removed the previously published BIK rates for the next tax year altogether.
The government has stated that: “By providing clarity of future appropriate percentages, businesses will have the ability to make more informed decisions about how they make the transition to zero-emission fleets.”
As a result, this means that company car drivers and fleet operators who choose a new car from April 2020 will no longer have to worry about an increased tax liability when they compare the car to an identical petrol or diesel model.
However, you should be aware that these changes do not affect the lease rental restrictions, capital allowances or any other CO2-related taxes and incentives, but will include fuel benefit charge. And existing vehicle excise duty (VED) rates will stay the same from 6 April 2020, despite the introduction of WLTP values for tax purposes from this time.
This therefore means it’s the perfect time to look at upgrading your fleet to electric vehicles, as not only will your tax rates be reduced, but your fleet will also cost less to run, which means you will be seeing a significant reduction in expense!
Some of the electric cars we have available for you to choose from are:
If you’d like to find out more about any of these models, head over to our dedicated Hybrid/Electric section of our website today, or get in touch with a member of our team at your local Johnsons today!