So, a blog close to my own heart. If you know me then you'll know that I'm a bit of a 'petrol head'. I love cars and spend far too much time looking, talking and thinking about cars.
But things are changing, and I've got an electric car. I'm the proud owner of a Jaguar I PACE and a total convert. It's fast, it's comfortable and importantly to the accountant in me, it's cheap to run.
It's no surprise then that I was delighted to see that the government announced plans to accelerate the take up of electric vehicles.
- In 2020/21 there will be a 0% benefit in kind rate for zero emission company cars
- In 2021/22 it will increase to 1%
- In 2022/23, it will return to the previously announced rate of 2%
Employers will not be liable for any Class 1A NIC charge on the provision. In 2020/21 employees provided with a zero-emission company car can have all their motoring costs met by their employer with no charge to income tax, including fuel costs if employers were to provide at work electric charging points.
The Government announced a benefit in kind rate reduction for company cars first registered after 6 April 2020 with CO2 emissions below 95g/km. The existing proposed rates for these cars will reduce by a further 2% in 2020/21 and 1% in 2021/22 before returning to the existing rates for 2022/23.
If you'd like to discuss providing employees with a low emission vehicle then please get in touch.