Here at Amber Vehicle Solutions, we have many great electric car business lease deals, and quite often we are asked about company electric car tax and how it is calculated.
Company car tax is the name given to the tax that is placed on the “benefit in kind” (BiK) that an employee receives through the provision of a car for their personal use.
This means that when an employee receives a car from their employer to use for both business and personal use then they will have to pay some tax on the benefit that they receive for this. HM Treasury calculates how much benefit they receive based on the Cars P11D value compare to just receiving an equivalent amount in pre-income tax pay.
The P11D value is comprised of:
And then a BiK tax rate is set on top of this.
At Amber Vehicle Solutions we offer some of the best EV car lease deals, and they are getting more and more popular. Around 50% of new cars in the UK are obtained by companies and BiK can have a significant impact on an employee’s monthly wages. This means that BiK represents a great way for the UK Government to encourage the adoption of EV as they are the lowest emitting vehicle.
In July this year, HM Treasury announced their intent to strongly incentivise full battery electric vehicles using these rates, and a more modest incentive on plug-in hybrid vehicles. This has led to a delay in many companies adopting EV’s as the new lower rates won’t become effective until April 2020.
An example of BiK tax shows that at the moment BiK rate on an EV with 0 g/km C02 emissions at the moment is 16% but after the change in tax next year, this will drop to 0% then rise to 1% in 2021 and 2% in 2022 – a big drop indeed.
If you are looking for an electric car business lease or any car lease offers Cheshire then please get in touch with Amber Vehicle Solutions.
Email : firstname.lastname@example.org
Telephone : 01625 704396
Company Address :
Amber Car Leasing
9A London Road
Amber Car Leasing are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 660869
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Registered Office : Sterling House, 501 Middleton Road, Chadderton, Oldham, OL9 9LY
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