Error parsing XSLT file: \xslt\FacebookOpenGraph.xslt Company car tax rates change today with 0% BIK for EVs
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Company car tax rates change today with 0% BIK for EVs

Date: 06 April 2020   |   Author: Illya Verpraet

As announced in the 2020 Budget in March, benefit in kind (BIK) rates are changing today, with relatively small changes for cars already registered, and a switch to WLTP-based CO2 figures for cars registered from today.

All newly-registered cars now get a BIK rate based on their CO2 emissions measured on the new WLTP cycle, rather than the old NEDC cycle. WLTP is more accurate and usually yields a higher CO2 figure, thus cancelling out the two-percentage point reduction most bands get.

Cars already registered continue to be taxed on their NEDC CO2 figure, although some bands have shifted one or two percentage points up or down. 

Until April 2021, cars with zero CO2 emissions - most likely pure-electric cars, though the handful of hydrogen cars on the market would qualify too - incur no company car tax at all. After that, they go to a still very favourable 1%.

Rates are also known until 2025, giving some much-needed stability to the fleet market. Caroline Sandall, co-chair of the Association of Fleet Professionals, said: "The hugely welcome, but surprising, freeze in company car BIK tax rates for 2023-24 and 2024-25 at 2022-23 levels could provide a significant boost in demand for what remains one of the nation's favourite employee benefits.

"Businesses and drivers have also been opting out of company cars because tax rates were not known for the full duration of the operating cycle. We have continually called on the government to recognise that fleets now operate company cars over typically four and five years."

The current tables are reproduced below.

 

 

 

 

 

 

 

 

Cars registered after 6 April 2020

CO2 emissions
(g/km, WLTP)

Electric range 
(miles)

2020-21 (%)

2021-22 (%)

2022-25 (%)

0

 

0

1

2

1-50

>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

<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+

 

37

37

37

 

Cars registered before 6 April 2020

CO2 emissions
(g/km, NEDC)

Electric range
(miles)

2020-21 (%)

2021-22 (%)

2022-25 (%)

0

 

0

1

2

1-50

>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

<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+

 

37

37

37



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