Hybrid and Electric Vehicle Tax Benefits for Business Fleet
From April 1st 2020
April 2020 will see business motorists embracing electric and hybrid technology given the opportunity to take advantage of zero benefit-in-kind (BIK) tax for their fleet of models. Announced in July 2019, the move by the UK government is encouraging professional motorists to make the switch to greener vehicles, and we at Vantage Motor Group are delighted to provide full details on the benefits.
With climate change a key concern on a global scale, zero emissions vehicles are an essential asset for all motorists. And, with a number of initiatives already in place to encourage adoption of such technology - government grants and no Vehicle Excise Duty among them - the new BIK scheme is the latest in the UK’s pledge to cut CO2 emissions.
The new BIK tax changes will find that those businesses operating all-electric fleets will have zero company car tax to pay in 2020/21, followed by just 1% in 2021/22, and 2% in 2022/23. Benefit-in-kind tax rates are set in advance in order to help organisations determine the financial costs associated with operating a fleet of vehicles during the financial year. As such, knowing that these rates will be set at such low rates will prove invaluable to businesses of all sizes.
Of course, those driving hybrid vehicles which emit up to 50g/km of CO2 will also be able to benefit from improved rates of BIK tax, while those operating traditional combustion engine vehicles will continue to incur the highest of tariffs.
The new April 2020 tax rates for vehicles are detailed in the table below.
CO2 emissions (g/km)
| Electric range (miles)
| 2020/21 (%)
| 2021/22 (%)
| 2022/23 (%)
|
0
| -
| 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 and above
| -
| 37
| 37
| 37
|
For more information on choosing the right hybrid or electric vehicles for your business, contact the team at Vantage Motor Group today. We’ll be happy to highlight the range of benefits and provide accurate calculations for your potential tax bill. Simply submit an online enquiry form or pick up the phone to speak to one of our friendly team now.
