Road Tax on Electric Cars Charging an Electric Car at Home Summary Company car tax, officially known as Benefit in Kind Tax (BiK), is calculated based on the P11D value of the vehicle, its CO2 tailpipe emissions and the employee’s income tax band. The BiK tax rate is set by HM Tr...
As the UK pushes towards a greener future, the Benefit in Kind (BiK) rates for electric cars have become a hot topic for company car drivers and fleet managers alike.
However, the downside as far as the staff member is concerned is that His Majesty’s Revenue and Customs (HMRC) sees the vehicle as a benefit in kind, and will tax them on it. To find out more about that, see ourBIK tax guide. How much that monthly bills is depends on a f...
Companies pay National Insurance on Benefit in Kind (BIK), which includes non-cash based ‘benefits’ like company cars. While EVs are still subject to tax on BIK, the electric company car tax rate is only 2% of the EV’s taxable list price (P11D value). To put this in perspective,...
On the other hand, if your firm has workplace chargers you can use, you can use them to charge up without worrying about tax.HMRCdoesn't treat that electricity as a benefit in kind, even if it ends up powering personal journeys.
a different way to get yourself into a fleet vehicle. You earn a lower salary, so you pay less income tax and National Insurance, and you get a shiny new company car. Bear in mind, though, that the car is still deemed to be a benefit by HMRC, so you'll still pay tax on it. ...
a different way to get yourself into a fleet vehicle. You earn a lower salary, so you pay less income tax and National Insurance, and you get a shiny new company car. Bear in mind, though, that the car is still deemed to be a benefit by HMRC, so you'll still pay tax on it. ...