PHEV BIK rates likely to go up much?

[steeeveeh]

Hi All,

I'm looking at moving from a car allowance to company car, based on the low BIK rates for PHEVs

I can get a 530e M Sport Auto well speceed which is currently showing as BIK rate of 16/14/14 for the next 3 years. (until 2022)

It just about makes sense financially at the moment and avoids me having to find a hefty deposit for a private lease (moving house, so every penny counts ) - however I am concerned when I read articles like this - https://www.fleetnews.co.uk/news/fleet-industry-ne... - which talk about PHEVs being some of the most high polluting cars. Granted the article is from 2017, so not sure on the current state of play.

My company car term is about 4yrs - therefore if the BIK rate was to increase ridiculously, e.g. upwards of 20% it starts to make the car less viable and I should probably retain the allowance.

Many thanks for any advice..

[kambites]

I believe from next year it will depend on the car's pure electric range.

[oop north]

See here

https://fleetworld.co.uk/government-publishes-comp...

What happens beyond 2021 is anybody’s guess - I was told on a tax course that the treasury / hmrc are not planning to increase EV bik rates as there is continued aim to incentivise them as Co cars but nothing is certain

[Jonny_]

oop north said:

See here

https://fleetworld.co.uk/government-publishes-comp...

What happens beyond 2021 is anybody’s guess - I was told on a tax course that the treasury / hmrc are not planning to increase EV bik rates as there is continued aim to incentivise them as Co cars but nothing is certain

The uncertainty beyond 2020/21 tax year makes choosing a company car something of a gamble, given that most are on 3 year contracts.

Can see HMRC putting up BIK by quite a lot for petrol and diesel cars for 2021/22. They're kind like that!

[ds666]

PHEV cars are verging on "tax evasion " as their real life economy is so far adrift from the suggested numbers ( not sure if the new testing sorts that ) .
One of our guys swapped from a 2.0d x4 to a 530e - his p11d tax has more than halved but his mpg has reduced from 40+ to 30ish mpg .And the range is so small he has 2 fill up twice as often .

Think the new rates sort that based on battery only range ?

[BMW330enut]

ds666 said:

PHEV cars are verging on "tax evasion " as their real life economy is so far adrift from the suggested numbers ( not sure if the new testing sorts that ) .
One of our guys swapped from a 2.0d x4 to a 530e - his p11d tax has more than halved but his mpg has reduced from 40+ to 30ish mpg .And the range is so small he has 2 fill up twice as often .

Think the new rates sort that based on battery only range ?

I’m the same although the main reason for filling up so often is the tiny fuel tank. Mines 40 litres!

The new hybrids will make the situation worse. Smaller engine working even harder to lug around an even bigger flat battery.

All the fault of the government I’m afraid for not recognising electricity as a fuel. I cannot claim back my charging so why would I charge it? I’m paying tax for free private fuel.