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.
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 Treasury and usually collected through your PAYE (pay-as-you-earn). Yo...
where it will then increase to 3%. BIK means that if you provide your employees with a financial benefit that isn’t a part of their salary, they will be taxed separately. Essentially, this makes choosing an electric car a highly tax-efficient...
Benefit in Kind (BIK) tax, widely known as company car tax, is calculated by the value of the vehicle, its CO2 emissions and the employee's income tax band. Electric cars are a taxable benefit, which means employees have to pay Benefit in Kind (BIK) tax on electric company cars. How...
The benefit in kind rules for electric company cars Tax implications of charging electric cars at work, at home and on the go VAT issues relating to electric cars Tax treatment of other kinds of vehicle (including hybrid cars and electric vans) Upcoming VED changes. What the future migh...
Electric vehicle owners currently also benefit from not having to pay car tax, meaning that over the a seven-year ownership period they can save over £1,000 (£1,274).6 Furthermore, since Benefit-in-Kind for electric company cars is taxed at just 1% in 2021/22, there are...
companycar,andthe electricitytochargeit, areexemptfromtaxationasbenefitinkind. Bonus(untiltheendof 2024)forthepurchase ofnewcars(privateuse)withafullyelectricrangeof≥60kmandgross listpriceof≤€60,000: €2,000+€3,000(importerbonusandfederalbonus)forBEVsandFCEVs. Additionalincentivesaregrantedbyprovin...
Employees are required to pay income tax on any benefits that they receive from their employer. The benefit in kind for company cars is calculated based on the car's C02 emissions and the list price of the vehicle. From 6 April 2020, the benefit in kind for fully electric cars is being...
There is currently no government electric car grant in the UK however there are other forms of government incentives for electric cars. A Kia electric car usually benefits from lower road tax and more favourable benefit-in-kind taxation for company car drivers. Do Electric cars pay tax? Do ...
Sticking with performance-focused electric cars, the MG Cyberster roadster has finally arrived, and we love it. It's on sale initially as a two-seat roadster, complete with a drop-top, buta hard-top coupe version is on the way later in 2024and has the benefit of a 2+2 seating configur...