Company Car Tax Electric Cars Hmrc. Hmrc classes company cars as a benefit in kind (bik), which is a term applied to most perks provided on top of your salary. As recently as 2020/21, the bik rate was 0 per cent, then in 2021/22 it went up to one per.
Opting for a lower emission car will result in a lower a benefit in kind value, meaning less income tax. How much cheaper is electric company car tax?
The Government Sets This, And It Is Two Per Cent For All Fully Electric Cars In The 2022/23 Tax Year.
Ban of the sale of petrol/diesel cars pushed back to 203522 september 2023.
This Rises To 2% For Each Of The Next Three Tax Years.
The table below is published by hmrc, and rates are frozen until the 2024/25 tax year.
Co 2 Emissions 32G/Km (Electric Only Range 35 Miles) = 12% Of P11D Value Is Taxed In 2022/22.
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Therefore, By The End Of The Tax Year 2027/28, The Bik Rate For Electric Vehicles Will Be 5%, A Rise Of 3% From The 2024/25 Rate Of 2%.
The government sets this, and it is two per cent for all fully electric cars in the 2022/23 tax year.
After This Time It Will Rise By 1% In The Following.
Opting for a lower emission car will result in a lower a benefit in kind value, meaning less income tax.
You Can Also Check If Your Employee Is Eligible For Tax Relief.
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