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BVRLA launches company car BIK campaign

Date: 15 June 2022   |   Author: Sean Keywood

A new campaign calling for electric company car BIK rates to be kept low, and to be published beyond the 2024-25 tax year, has been launched by the BVRLA.

The rental and leasing industry body said its #SeeTheBenefit campaign aimed to highlight the success of the company car tax regime to date in promoting electric cars, and to encourage fleet industry professionals to write to their local MP, via a template available on its website, about how company car schemes were democratising the move to EVs.

The BIK rate for company cars that emit 0g/km of CO2, including pure EVs, has been set at 2% until the end of 2024-25, having previously been 0% in the 2020-21 tax year, and 1% in 2021-22.

As with all other CO2 emissions bands, no rates have yet been announced by the government for the years beyond 2024-25.

BVRLA chief executive Gerry Keaney said: "The strides we have made as an industry to phase-out petrol and diesel cars before 2030 are clear; nearly 60% of electric vehicles on UK roads are company registered. 

"Order banks are currently healthy, with 80% of salary sacrifice orders being for battery electric vehicles as their low tax rates appeal to drivers.

"The uncertainty caused by the lack of foresight beyond 2024/25, or by seeing a sudden jump in rates, will cause the growth of EVs to stall. This needs to be addressed by the Chancellor in the Budget this autumn."

The BVRLA says a key part of its campaign will be an event for MPs in July, when a selection of industry experts will host a drive-by event outside the Houses of Parliament. 

The BVRLA says the event will highlight the positive outcomes that will come with more years of tax foresight, keeping EV BIK rates low, and staggering any increases to avoid a sudden hike. At the event, MPs will be asked to pledge their support to the #SeeTheBenefit campaign and encourage the Chancellor to act in the autumn Budget.

MPs are being encouraged to attend the event via the letters sent through the BVRLA's campaign.

Keaney said: "As we weather the cost-of-living crisis, drivers need to know what their tax bills will be. The government needs to keep up the fragile momentum it has created in the face of the current economic headwinds, now is not the time to accelerate tax rises.

"The more industry professionals that write to their MP on this matter, the better. Each letter sent gives the campaign more momentum, educates more MPs, and makes our voice louder with those that will ultimately determine future rates."