LESS TAX ON ELECTRIC / HYBRID COMPANY CAR / VAN FLEETS
COMPANY CAR TAXES
- On private fleets (that make up half of all new vehicle purchases) put waiver on the excise duty surcharge for electric and hybrid electric company cars and vans.
- 1 per cent company car tax for fully electric company cars (back to Benefit in Kind (BiK) rate for 2021-2022 tax year).
BENEFIT IN KIND TAXES FOR DRIVERS
- As basic income tax falls to 10p in the Pound from 20p in the Pound, less BiK to pay by employee using company car.
- Lower BiK to 5 per cent for plug-in hybrid company cars that can cover between 30 and 39 miles on electric power alone; from current rate of drivers paying BiK at 10 per cent (2022-2023 rates).
- Lower to 3 per cent for those that can go even further (40-49 miles), as driver now pays 6 per cent BiK (2022).
- Either way, it’s far less than the 20 per cent-or-more rates that apply to petrol and diesel cars.
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ELECTRIC CHARGING POINTS IN WORKPLACES AND DEPOTS
- For company fleets that transition entirely to Electric Vehicles by 2025, government pledge to install charging stations in their workplaces and depots.