Benefit in Kind on EVs

[RossP]

The government have adopted a strange strategy on EVs as company vehicles. It started off low (was zero in 2014) but has been gradually ramped uo to 13% this year and 16% next but then falls to 2% in April 2020!

If they are serious about promoting the use of EVs, I think company car drivers need to be actively encouraged. This will have a big knock on effect in the 2nd hand market too.

With that in mind I have started a petition to bring forward the proposed drop to 2% by a year.

If you agree, then please sign it.

https://petition.parliament.uk/petitions/225968

[autofocus]

Thanks,

I have just secured a Golf GTE as the company car for my new job which starts in a couple of weeks.

I currently drive a BMW 320d M Sport and pay 33% BIK (on a salary in the 20% tax bracket), with the Golf this drops to 13% which is superb especially as my new job gives me a salary in the 40% tax bracket.

Plug in Hybrid was the only way to go for me and if your petition gets the change in earlier then happy days for any full EV drivers. Might make the change of the Golf in 2021 to a full EV a dead cert.

Regards

Tim

Edited by autofocus on Wednesday 1st August 21:50

[manracer]

I'm in, I've also shared to my 2k EV based Instagram followers, not loads but will help.

[Toaster]

EV's are here, and here to stay people are buying them so why would a government strapped for cash let company car drivers off the hook?

[oop north]

autofocus said:

Plug in Hybrid was the only way to go for me and if your petition gets the change in earlier then happy days for any full EV drivers. Might make the change of the Golf in 2021 to a full EV a dead cert.

Regards

Tim

Edited by autofocus on Wednesday 1st August 21:50

It’s dropping to 2% in April 2020 anyway - this is to bring forward one year

[Nickbrapp]

Toaster said:

EV's are here, and here to stay people are buying them so why would a government strapped for cash let company car drivers off the hook?

Because EVs are more expensive than their petrol powered brothers, and it’s unlikley that anyone will buy one with their own Money while they are as the cost savings for most people wouldn’t be met,

Companies on the other hand would be, higher miles, leasing the new cars anyway, discounts when leasing more than 1. Dropping the BIK increases demand and fleets will begin to add them, meaning we sell more which makes it look like the uk government are good at supporting EVs

[RossP]

Also bringing in more EVs to company car drivers will accelerate the number of EVs on the secondhand market when their leases expire.

[Toaster]

Nickbrapp said:

Toaster said:

EV's are here, and here to stay people are buying them so why would a government strapped for cash let company car drivers off the hook?

Because EVs are more expensive than their petrol powered brothers, and it’s unlikley that anyone will buy one with their own Money while they are as the cost savings for most people wouldn’t be met,

Companies on the other hand would be, higher miles, leasing the new cars anyway, discounts when leasing more than 1. Dropping the BIK increases demand and fleets will begin to add them, meaning we sell more which makes it look like the uk government are good at supporting EVs

Don't be Bonkers an i3 is £34K and about £29K with the government grant and you want tax free benefit in kind dream on... The Government incentives were only for a limited time untill the uptake was XX,000 of EV's and they are close or at that point so whats the point in throwing BIK money away

I have a company car, I take the cash (pay the tax) buy a car, the millage allowance covers running costs and when I sell it I get a wedge to place against another car plus the cash.......Happy Days.

The alternative way is buy a cheap car and keep driving it until it expires you will probably make more savings unless your ego needs a new car every year or so.

[Toaster]

RossP said:

Also bringing in more EVs to company car drivers will accelerate the number of EVs on the secondhand market when their leases expire.

Maybe, but as ICE cars have driven the secondhand market with BIK why would the government let you have an EV without a BIK, they need the tax money.

[RossP]

They are already committed to reducing EV BIK to 2%. This is about bringing it forward a year.

[Toaster]

RossP said:

They are already committed to reducing EV BIK to 2%. This is about bringing it forward a year.

Excellent news as it must mean EV's are getting traction........or the treasury is desperate for cash....maybe a bit of both eh.

[anonymous-user]

Nickbrapp said:

Toaster said:

EV's are here, and here to stay people are buying them so why would a government strapped for cash let company car drivers off the hook?

Because EVs are more expensive than their petrol powered brothers, and it’s unlikley that anyone will buy one with their own Money while they are as the cost savings for most people wouldn’t be met,

Companies on the other hand would be, higher miles, leasing the new cars anyway, discounts when leasing more than 1. Dropping the BIK increases demand and fleets will begin to add them, meaning we sell more which makes it look like the uk government are good at supporting EVs

Your first paragraph is spot on, only the tech junkies will buy from their own pockets, but the rest of it?

There are less than 1m BIK attracting vehicles in the UK total of over 38m. Insignificant in how it might reflect on a government.

By all means give everyone an incentive to go EV, though we know that’s can’t last as the numbers go up.

The millions who still won’t be able to afford them will react badly to being taxed even further to subsidise those able to (quite rightly) and the government won’t accept a lower overall tax take. The only way is for EVs to be taxed similarly.

[98elise]

Toaster said:

RossP said:

Also bringing in more EVs to company car drivers will accelerate the number of EVs on the secondhand market when their leases expire.

Maybe, but as ICE cars have driven the secondhand market with BIK why would the government let you have an EV without a BIK, they need the tax money.

Tax isnused for two purposes, raise revenue and to change habits. Things they want to encourage get lower tax.