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Go green and save on your company car tax
Go green and save on your company car tax
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Company Car Tax is going down for Ultra Low Emission Vehicles. Learn how you can save on your company car tax.

Big changes are coming to company car tax. As part of these changes, by switching to an electric or hybrid car, company car drivers could save on their tax bill. If they are committed to going all electric, they could pay absolutely nothing in company car tax for the 2020/21 tax year.

If you want to save on your company car tax (or help your employees save on their tax) then you should consider switching to a Hybrid or Electric vehicle. Thankfully, Hyundai have a great range of electric, plug-in hybrid and self-charging vehicles available and Johnsons Hyundai can advise you on a vehicle that suits your needs.

Call us on 03301 280 232 or enquire online

What's changing with company car tax?

Company Car Tax is calculated from the value of the car (called the P11D) and it's Benefit in Kind (BIK) rate. Called the Benefit in Kind rate, this percentage depends on the vehicles fuel type and emission output. This percentage is then then applied to the value of the car to get a 'taxable amount'. You are then taxed at this amount depending on what tax bracket you fall into (20%, 40%, 45%). In short, with higher vehicle emissions comes increased company car tax bills.

The government is now slashing these Benefit in Kind rates for the lowest emission cars from the 6th April in a move to push company car drivers into more environmentally friendly cars, with the biggest cuts on electric and plug-in Hybrid cars. Check out our table below to see the changes coming.

​Fuel Type
CO2 ​Emissions​2019/2020 BIK Rate2020/2021 BIK Rate
​All-Electric​0g/km​16%0% (-16%)
​Plug-in Hybrid​1-50g/km
Electric only range: 130+ miles
​16%​2% (-14%)
​Plug-in Hybrid​1-50g/km
Electric only range: 70-129 miles
​16%5% (-11%)
​Plug-in Hybrid​1-50g/km
Electric only range: 40-69 miles
​16%​8% (-8%)
​Plug-in Hybrid​1-50g/km
Electric only range: 30-39 miles
​16%12% (-4%)
​Plug-in Hybrid​1-50g/km
Electric only range: less than 30 miles
​16%14% (-2%)
​All others*
​51-54g/km​19%15% (-4%)
​All others*​55-59g/km​​19%16% (-3%)
​All others*​60-64g/km​​19%​17% (-2%)
​All others*​65-69g/km​​19%​18% (-1%)
​All others*​70-74g/km​​19%​19% (+-0%)
​All others*​75g/km​​19%20% (+1%)
​All others*​76-79g/km​22%​20% (-2%)
​All others*​80-84g/km​22%​21% (-1%)
​All others*​85-89g/km​22%22% (+-0%)
​All others*​90-94g/km​22%​23% (+1%)
​All others*​95-99g/km​23%​24%(+1%)
​All others*​100-104g/km​24%​25%(+1%)
​All others*​105-109g/km​25%26%(+1%)
​All others*​110-114g/km​26%​27%(+1%)
​All others*​115-119g/km​27%28%(+1%)
​All others*​120-124g/km​28%29%(+1%)
​All others*​125-129g/km​29%30%(+1%)
​All others*​130-134g/km​30%31%(+1%)
​All others*​135-139g/km​31%​32%(+1%)
​All others*​140-144g/km​32%​33%(+1%)
​All others*​145-149g/km​33%​34%(+1%)
​All others*​150-154g/km​34%35%(+1%)
​All others*​155-159g/km​35%36%(+1%)
​All others*​160-164g/km​36%​37%(+1%)
​All others*​165+g/km​37%37%(+1%)

​*non-RDE Diesels are subject to a 4% supplement

As you can see, by choosing to go for an electric or plug-in hybrid, you could make huge savings on your tax bill. Alternatively, you could still save a lot on your tax bill by switching to a lower emission vehicle such as one of the Hyundai Hybrid cars.

Find out more about your options today.

Call 03301 280 232

View the Electric and Hybrid rangeEnquire online

Terms and Conditions: All efforts are made to keep this page accurate although some discrepencies may arise or policies may change.