NEWS
Pure electric cars will pay no company car tax next year
From 6 April 2020 until 5 April 2021, full battery electric vehicles (BEVs) will pay no Benefit in Kind rate. This compares to 37% at the opposite end of the emissions scale.
This 0% rate also applies to company car drivers in pure electric vehicles registered prior to April 6, 2020. Additionally, the 0% rate will also apply to company cars registered after April 6, 2020, with emissions from 1-50g/km and which have an electric mile range of 130 miles or more. Both will increase to 1% in 2021/22 and 2% in 2022/23.
The table below shows the Benefit in Kind rates for vehicles with less than 50 g/km CO2 emissions before and after 6 April 2020 including Electric, Petrol and RDE2 Diesel.
| Vehicle CO2 emissions | BiK rate for cars registered before 6 April 2020 | BiK rate for cars registered after 6 April 2020 | ||||||
|---|---|---|---|---|---|---|---|---|
| 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2019-20 | 2020-21 | 2021-22 | 2022-23 | |
| 0 g/km | 16% | 0% | 1% | 2% | n/a | 0% | 1% | 2% |
| 1-50 g/km (electric range >130 miles) | 16% | 2% | 2% | 2% | n/a | 0% | 1% | 2% |
| 1-50 g/km (electric range 70-129 miles) | 16% | 5% | 5% | 5% | n/a | 3% | 4% | 5% |
| 1-50 g/km (electric range 40-69 miles) | 16% | 8% | 8% | 8% | n/a | 6% | 7% | 8% |
| 1-50 g/km (electric range 30-39 miles) | 16% | 12% | 12% | 12% | n/a | 10% | 11% | 12% |
| 1-50 g/km (electric range <30 miles) | 16% | 14% | 14% | 14% | n/a | 12% | 13% | 14% |
Benefits in Kind Comparison: Electric vs Petrol
The below example is based on a higher rate taxpayer buying an electric Tesla Model S versus a petrol Mercedes S 450 after April 2020.
| Vehicle | Tesla Model S Performance | Mercedes S 450 L AMG Line |
| P11D Value (approximate list price at the time of writing (23/09/2019) with no separate delivery fee | £90,000 | £90,000 |
| Emissions | 0 gCO2 /km | 169 gCO2 /km |
| 2020-21 monthly BiK cost @40% tax rate | £0 per month (@0% BiK rate) |
£1,100.00 per month (@37% BiK rate) |
| 2021-22 monthly BiK cost @40% tax rate | £30.00 per month (@1% BiK rate) |
£1,100.00 per month (@37% BiK rate) |
| 2022-23 monthly BiK cost @40% tax rate | £60.00 per month (@2% BiK rate) |
£1,100.00 per month (@37% BiK rate) |
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