From 6th April 2020, Benefit in Kind (BIK) savings on efficient plug-in hybrid electric vehicles and battery electric vehicles will increase dramatically, in a bid to increase the uptake of fully electric cars among fleets.
The complex rules around BIK savings are hard to navigate so LeasingOptions, one of the UK’s leading car leasing companies, explains the rules changes due to take place in April 2020.
The company car taxation system is due to be revised in 2020, with electric vehicles set to be exempt from BIK tax from April 2020. BIK rates will increase to 1% from April 2021 and to 2% in April 2022.
Mike Thompson, Director of Sales and Marketing at LeasingOptions.co.uk said: “While it’s thought that this shift in BIK will have a short-term negative effect on the new car market, as customers wait for the new tax break, it’s hoped that the new regulations will give a substantial benefit to the industry next year, and for the years that follow.
“The new tax cut is a welcome incentive to help the push toward zero emissions motoring, even more so after the government reduced the payments available through the grant scheme for new purchases of BEVs, and it demonstrates their commitment, and recognition of the value of the fleet or company car market to support the Road to Zero campaigns.”
For further information on electric cars and the planned changes in BIK savings on hybrid/electric vehicles please visit https://www.leasingoptions.co.uk/electric-vehicles