New EV BIK rates 0% 2020 rising to 2% in 2023
Discussion
Poppiecock said:
This just doesn’t make sense!
You’re giving a tax break to those whose company car is a ‘perk’, whilst hammering the business driver who still needs a diesel, petrol hybrid or PHEV due to the miles they cover.
While there are certainly some doing silly high miles, how many couldn’t make a 250+ mile range car work for them? Particularly something like a Model 3 that can take on another 100+ miles in a 15 minute stop (and will get faster)? You’re giving a tax break to those whose company car is a ‘perk’, whilst hammering the business driver who still needs a diesel, petrol hybrid or PHEV due to the miles they cover.
Remember 320d /A4/C class driver on higher rate tax will be paying more than £350pm just in company car tax. It’s a good chunk of money to save for a small amount of possible inconvenience.
sjg said:
While there are certainly some doing silly high miles, how many couldn’t make a 250+ mile range car work for them? Particularly something like a Model 3 that can take on another 100+ miles in a 15 minute stop (and will get faster)?
Remember 320d /A4/C class driver on higher rate tax will be paying more than £350pm just in company car tax. It’s a good chunk of money to save for a small amount of possible inconvenience.
250 miles may work on day 1. But what about days 2, 3 and 4?Remember 320d /A4/C class driver on higher rate tax will be paying more than £350pm just in company car tax. It’s a good chunk of money to save for a small amount of possible inconvenience.
For example, I work from home Monday and Friday. This Thursday, I'll do around 300 miles to get to a couple of meetings where there are no destination chargers - and finding a Supercharger (or any kind of rapid charger) would mean taking a detour to find it.
In fact, much of my working week can be spent in places where the only charging point is that for the local milk float. I'd have to start planning my week around access to chargers - especially as charging at home is a massive pain in the arse.
Also consider that, if you encourage even a small percent of company drivers into BEVs, the charging network will quickly fall over - you'll see charge throttling and queues for chargers because local infrastructure can't cope.
I've seen a quote for £2m of civil engineering work to install 2x150kW chargers recently.
BEVs just don't work for many company car drivers - yet the government is effectively chucking subsidies at them to encourage their use. Why should someone who can put up with the compromise as their company car sits in a car park all day get a tax break at the expense of someone who uses the car as a business tool? (I've gone Lexus as the x30e range was not available when I needed to order, so I'm paying £290 or so a month, a big saving over the £400+ I'd pay for an equivalent 5-series or A6 - but still crazy money to pay for a business tool. It barely moves at the weekend as I have other stuff to play with)
Frustrates me this does.
As a business user I luckily got a 330e this time even that's a pain to keep filling up. I can never get on a charger at the office as the Tesla company cars are on there all day as "I dont need it like they do" so although my tax is better than it was. Collegues in perk Tesla and other ev stuff are now laughing come pay day.
Genuine business user grade car is diesel only at my place too so it's just frustrating.
Rant over!
As a business user I luckily got a 330e this time even that's a pain to keep filling up. I can never get on a charger at the office as the Tesla company cars are on there all day as "I dont need it like they do" so although my tax is better than it was. Collegues in perk Tesla and other ev stuff are now laughing come pay day.
Genuine business user grade car is diesel only at my place too so it's just frustrating.
Rant over!
Poppiecock said:
This just doesn’t make sense!
You’re giving a tax break to those whose company car is a ‘perk’, whilst hammering the business driver who still needs a diesel, petrol hybrid or PHEV due to the miles they cover.
bYou’re giving a tax break to those whose company car is a ‘perk’, whilst hammering the business driver who still needs a diesel, petrol hybrid or PHEV due to the miles they cover.
ks. I do at least 25k a year in my EV, it's a tool, not a perk.
otolith said:
As I understand it, pool cars are not subject to BIK. Anything that isn't a pool car is a perk, IMO. Especially when it's a 40k compact exec saloon - is there a business case for it not being a base Focus?
Try doing 35k miles a year in a base Focus and 35k miles a year in a compact exec, then come back with your opinions.I've done both in my time.
This is before you get into discussions about customer / client perceptions, too.
All this does is encourage the return of the days of the perk car in order to avoid paying income tax on salary increases.
Poppiecock said:
IN51GHT said:
bks.
I do at least 25k a year in my EV, it's a tool, not a perk.
You discussion suggests you drive to and from one place of work where I guess you have workplace charging.ks. I do at least 25k a year in my EV, it's a tool, not a perk.
That’s not a true business use case.
Poppiecock said:
This just doesn’t make sense!
You’re giving a tax break to those whose company car is a ‘perk’, whilst hammering the business driver who still needs a diesel, petrol hybrid or PHEV due to the miles they cover.
It's to jump start the EV market place. In 20 years we will all drive the things, but right now we need more on the road to get stuff moving. This is an easy way to do it - Is it a "perk" to let me drive a £100k Model S for the same net cost as my crappy £40k Volvo I have now....yes.....but my company still has to buy a £100k car so I'm doing my bit for advancement of the market place too.You’re giving a tax break to those whose company car is a ‘perk’, whilst hammering the business driver who still needs a diesel, petrol hybrid or PHEV due to the miles they cover.
If it wasn't for people dropping big money on iPace/Tesla/etc the EV market would take YEARS to get going.
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