In light of the new company car benefit-in-kind tax rates, Venson Automotive Solutions has released a Company Car BiK whitepaper designed to improve knowledge on the tax benefits and incentives for fleet decision-makers and company car drivers when making their fleet choices over the next three years. The free online Guide addresses key questions about BiK, and the tax advantages of embracing plug-in cars.
Many fleets and company car drivers delayed replacing their company cars as they awaited tax clarity from the Government. Now the new rates have been published, a new layer of complexity has been added to what was already a far from clear picture. Danielle Tilley, Business Development Director at Venson Automotive Solutions comments: “Now is the time to comprehensively review company car choice lists and profile driver journey and mileage usage per individual. The latest company car benefit-in-kind tax has a focus on electric vehicles, so fleet managers need to embrace the new drive-chain to limit employees’ tax burden.”
Businesses can adopt ‘plug-in’ vehicles as part of their fleet offering to deliver minimum benefit-in-kind tax bills for drivers. But even if, at this stage, fleet managers are unable to adopt electric vehicles, the Venson guide sets out the tax benefits associated with petrol and diesel vehicles. For example, opting for an RDE2-compliant model or finding alternative ways of travel with the advent of Business Mobility-as-a-Services (BMaaS) will help mitigate the future company car benefit-in-kind tax burden.
Danielle Tilley continues: “From our own findings, we know there is a greater willingness by company car drivers to adapt to an EV world, even though there are concerns over vehicle availability and the practicalities of being able to charge a vehicle at home. However, EVs are here to stay and are the future, and there are some generous tax incentives to help with the transformation.
“If we are going to meet the ambitious target set by the Government’s advisory Committee on Climate Change to end the sale of new petrol and diesel cars and vans by 2030 at the earliest, then in many cases it is just two fleet vehicle replacement cycles away. Therefore, Fleet decision-makers need to be thinking ahead and factoring electric vehicles into their long-term fleet management plans.”