Currently reading: Electric car users to pay no company car tax in 2020
Government review sees changes to 2020 benefit in kind ratings to boost low and zero emission vehicles

Changes to the UK’s company car tax system will mean drivers choosing a pure electric car pay no benefit-in-kind charges from next year.

After a review of the industry changes brought about by the new Worldwide Harmonised Light Vehicle Test Procedure (WLTP) emissions regulations, the Treasury has axed its previously published rates in favour of a new system.

It will mean that, for cars registered from April 6th next year, most benefit-in-kind rates will be reduced by two percentage points over the current system. For EVs, that means a zero percentage rate, which is also extended to vehicles registered prior to April 6th. 

That figure will also apply to hybrids and plug-in hybrids that are capable of 130 miles or more of pure electric range, with official CO2 emissions of between 1-50g/km - although no such models currently exist in the UK market.

However, the free ride won’t last long for EV users. Current plans are for the 0% rate to increase to 1% by 2021/22 and 2% in 2022/23, although the government says they “remain under review”.

In a statement the government claims the new figures will give businesses “the ability to make more informed decisions about how they make the transition to zero-emission fleets”.

Read more:

Smart charging could lead to an electric vehicle fuel tax

Top 10 best electric cars 2019

Company car tax: what you need to know

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sayaerwin 5 November 2020


I am going to about buying an electric car.


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Jacqueline Johnson 3 September 2019

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