Benefit-In-Kind Rates for Electric Cars | Smart Home Charge | Smart Home Charge

Company car tax for electric cars

11th Dec 2019 Danny Morgan


Benefit-in-kind rates is a form of company car tax. This guide explains all you need to know about BIK rates, company car tax for electric cars, how they are decided and how it affects you.

 

What is a BIK tax?

A Benefit-In-Kind Rate (or BIK) is essentially a tax that applies to benefits or other perks an employee receives from the employer.

 

Does the BIK rate apply to my car?

If you have a company car that you use privately, then a BIK tax or contribution is applicable.

The BIK tax rates are based on CO2 emissions, the list price including extras and VAT but excluding the first-year registration fee and vehicle tax.

Cars with higher CO2 emissions tend to have a higher BIK Rate, while those with lower emissions generally have a lower rate.  

 

What is the company car tax for electric cars and plug-in hybrids?

The BIK tax depends on your vehicle and the rates tend to change each tax year. Electric cars and plug-in hybrids have a more favourable BIK rate because of their zero or low CO2 emissions. In fact, for the tax year April 2020/2021 fully electric cars will benefit from a zero per cent company car tax rate because of their zero emissions. Then they will rise by one per cent for the following two years, which makes them excellent choices for company car drivers.

Tip: read our guide on Why Electric Cars Make Fantastic Company Cars to learn about the benefits of an EV for work.

 

What are the new company car tax rates from April 2020 onwards?

Car registered before 6th April 2020
CO2 (g/km) Electric range (miles) 2020-21 (%) 2021-22 (%) 2022-23 (%)
0 n/a 0 1 2
1-50 Greater than 130 2 2 2
1-50 70-129 5 5 5
1-50 40-69 8 8 8
1-50 30-39 12 12 12
1-50 Less than 30 14 14 14
51-54   15 15 15
55-59   16 16 16
60-64   17 17 17
65-69   18 18 18
70-74   19 19 19
75-79   20 20 20
80-84   21 21 21
85-89   22 22 22
90-94   23 23 23
95-99   24 24 24
100-104   25 25 25
105-109   26 26 26
110-114   27 27 27
115-119   28 28 28
120-124   29 29 29
125-129   30 30 30
130-134   31 31 31
135-139   32 32 32
140-144   33 33 33
145-149   34 34 34
150-154   35 35 35
155-159   36 36 36
160 or more   37 37 37

 

Car registered after 6th April 2020
CO2 (g/km) Electric range (miles) 2020-21 (%) 2021-22 (%) 2022-23 (%)
0 n/a 0 1 2
1-50 Greater than 130 0 1 2
1-50 70-129 3 4 5
1-50 40-69 6 7 8
1-50 30-39 10 11 12
1-50 Less than 30 12 13 14
51-54   13 14 15
55-59   14 15 16
60-64   15 16 17
65-69   16 17 18
70-74   17 18 19
75-79   18 19 20
80-84   19 20 21
85-89   20 21 22
90-94   21 22 23
95-99   22 23 24
100-104   23 24 25
105-109   24 25 26
110-114   25 26 27
115-119   26 27 28
120-124   27 28 29
125-129   28 29 30
130-134   29 30 31
135-139   30 31 32
140-144   31 32 33
145-149   32 33 34
150-154   33 34 35
155-159   34 35 36
160-164   35 36 37
165-169   36 37 37
170 or more   37 37 37


How do I calculate the benefit-in-kind tax for my electric or plug-in hybrid car?

You can do this in two ways. You can refer to the tables above and calculate the cost. You will need to know your vehicle’s:

  • P11D value (list price including extra and VAT but without first-year registration and vehicle tax)
  • Your vehicle’s CO2 emissions
  • Your vehicle’s electric range (for April 2020 onwards only)

To calculate the tax, multiply the P11D value by the relevant BIK percentage.

Or you can use this calculator tool: https://www.fleetnews.co.uk/cars/car-tax-calculator/

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