The Government has said that company car drivers choosing a
After a long-awaited response on the review of WLTP and vehicle taxes, HM Treasury has ruled out its previously published BIK rates for 2020/21.
Two new BIK tables have been created for company car drivers; one created for those driving company cars registered after April 6, 2020 and one for those driving a company car before April 6, 2020.
For cars first registered from April 6, 2020, most company car tax rates will be reduced by two percentage points. This means for pure electric vehicles that emit zero tailpipe emissions, company car drivers will be taxed 0%, meaning they will pay no BIK tax.
The zero percentage rate also extends to company car drivers in pure electric vehicles that were registered prior to April 6, 2020.
The 0% rate also applies to company cars registered from April 6, 2020, with emissions from 1-50g/km of Co2 and a pure electric range of 130 miles or more. It's worth noting that both will increase to 1% in 2021/22 and 2% in 2022/23
Pure electric company cars registered before April 6, 2020, will also increase to 1% and 2% in subsequent years, 2021/22 and 2022/23.
Company cars registered before April 6, 2020, with emissions from 1-50g/km of Co2 and a pure electric range of 130 miles or more will get a 2% BIK rate in 2020/21 and will stay the same for two subsequent tax years.
Once rates are realigned in 2023/24, fleets will have one BIK table.
* All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.
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