Low emission vehicles can offer considerable tax savings to your drivers - at no cost to you
Driving an electric vehicle not only has a positive impact on the environment but can also dramatically reduce the drivers Benefit-in-Kind Tax (BIK) tax implications.
BIK is based upon both the value of the car and its emissions so those vehicles with lower CO2 will benefit from considerable tax savings.
Fully electric vehicles currently fall within the lowest BIK tax bracket for company car drivers, only 1% from April 2021, rising to 2% in the 2022/23 tax year.
Currently, PHEVs (those with less than 51g CO2 per km) with the greatest electric-only driving range fall within the 40-69 BIK range and are taxed at only 7% BIK in 2021/22 tax year, rising to 8% in 2022/23.