Electric Car FAQ

How much is company car tax on electric cars?

Electric Car VED & BIK

EV’s are exempt from the Vehicle Excise Duty (VED), but you still have to pay Benefit-in-Kind (BIK) tax if you plan to use an EV as a company car. This is because whilst the government want to incentivise the use of electric vehicles, they also don’t want to facilitate tax dodging.

That being said, BIK was set at zero percent until April 2021, where it will increase thereafter to a whopping 1%. So there is nothing to be concerned about and it totally reinforces the notion that EV’s are the way to go.

Electric Van Benefit Charge

Some companies might want to give their employees a van that they can also use for personal use. In this type of situation, a Van Benefit Charge supersedes the Company Car tax, and costs £2,908 for Electric Vans, which includes a 20% fee reduction vs the same charge on petrol and diesel vans.

Jason Rose

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