Company Electric Cars Dealt A Blow By The Chancellor

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The government needs to do more to encourage Electric Car buying as their prices are still very high. Graham Hill of thebestcarfinanceblog.co.uk tells us that an equivalent Nissan Juke petrol version is half the price of the Nissan Leaf  Tekna. Here is an excerpt from his article;

13% BIK tax will hit electric cars badly in 2018 acting as a disincentive

Whilst company car drivers seemed to have been left alone whilst benefitting from fuel duty freeze in the small print was the leaving alone of a previous announcement that benefit in kind (BIK) bands that kick in 12 months from now will continue to 2017 and 2018 tax years. This is the increase of 2 percentage points for each tax band per annum.

So by 2018 the BIK tax applied to cars with a CO2 emission of 76-94g/km will be 19% of the car’s P11D value. So much for looking after the motorist. In 2018 this will raise £240 million for the treasury with a further £480 million in 2019. Those that drive low emission cars will suffer the most as we will see cars under 51g/km dropping into the 13% band with 51-74g/km up to 16% by 2018.

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Andrew Kirkley

Director at OSV Ltd
Andrew enjoys: Movies and travelling to new cities to explore different cultures.

Andrew has been in the motor trade for over 20 years. What he enjoys most about his job is the team spirit and the dedication of his work colleagues. He also appreciates the teams input in the improvement of the company.
Andrew Kirkley

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  • 26th April 2014

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