Electric Vehicle business drivers will pay no BIK Tax in 2020-21
Date posted: 17 September 2019
What does that mean?From April 2020, tax on pure battery and efficient plug-in hybrid electric vehicles will decrease dramatically. The Government announced that company car drivers choosing a pure electric vehicle will pay no benefit-in-kind (BIK) tax in 2020/21, rising to just 1% in 2021-22 and 2% in 2022-23. Any cars registered from today will attract BIK at the current rate, but are eligible for the 0% rate from April 2020.
How does this affect a BIK tax payer?
The table below illustrates the financial saving to the end user, in 2020 and 2021.
|Vehicle||19/20 BIK Taxable Value||20/21 BIK Taxable Value|
|I-PACE SE |
P11D value = £69,940
|BIK at 16% = £11,190 tax |
Based on a 40% tax payer this results in £373 tax per month (£4,476 per year)
|BIK at 0% = £0 tax|
What is BIK?The provision of a company car that is available for the employee's private use is treated as a benefit in kind (BIK), the employee must pay tax on this benefit. This is known as company car tax (or car benefit charge).
Does my Business benefit?
In addition to the driver savings, the Business (when outright purchasing the vehicle) also benefits from a greatly reduced National Insurance Contribution. Furthermore, if the vehicle is used for business use only, the business also benefits from 100% Write Down Allowance in Year 1.
Why choose I-PACE?The multi-award winning I-PACE is the perfect choice for your business. With a fully charged battery, I-PACE can take you on journeys of up to 292 miles thanks to its high tech Lithium-ion battery. Our designers have combined luxury craftmanship with generous proportions of interior space and storage, giving the comparable feel of a larger class of vehicle. I-PACE also features some of the latest adaptive technologies along with our infotainment system Touch Pro Duo, allowing you to seamlessly integrate your devices to your vehicle.
Additionally, Jaguar I-PACE is eligible for the Government Plug-in Car Grant, which means that you can claim £3,500 off the price of the vehicle*.
Contact our award-winning team at Lloyd Jaguar Carlisle on 01228 319173 for more information or CLICK HERE for our latest business offer.
* The Government Plug in Car Grant is subject to grant funds availability at the time of ordering, please contact Lloyd Jaguar Carlisle for more information.