Benefit in Kind (BIK) Savings on Electric and ULEV Vehicles in 2020

BENEFIT IN KIND (BIK) SAVINGS ON ELECTRIC AND ULEV VEHICLES IN 2020

BENEFIT IN KIND (BIK) EXPLAINED

Benefit in Kind are perks (provided by employers that are not included in an employee’s salary. One of the most common taxable benefit-in-kind perk is the use of a company car. A company car is considered to be a taxable perk and results in the owner of the vehicle paying a benefit-in-kind tax value. The amount of BIK tax you’ll pay will be broken down into certain pay brackets which consider the environmental impact of the vehicle, namely the amount of CO2 emissions the car releases. As pure electric vehicles have no exhaust emissions, they fall into the lowest bracket of BIK tax, so company car drivers could save significantly each month by switching to an EV.

BENEFIT IN KIND (BIK) SAVINGS

Pure Electric Vehicles (EV’s) will have Benefit in Kind (BIK) company car tax rates slashed to 0% in 2020. Furthermore, the 0% rate is also extended to company car drivers in pure electric vehicles registered prior to April 6, 2020.

Ultra Low Emission Vehicles (ULEV) will also benefit from a reduction in BIK tax rates too.

BENEFIT IN KIND (BIK) RATES TABLES

CURRENT BENEFIT IN KIND (BIK) RATES 2019

CO2 (g/km)	2019-20 (%)
0-50	16
51-75	19
76-94	22
95-99	23
100-104	24
105-109	25
110-114	26
115-119	27
120-124	28
125-129	29
130-134	30
135-139	31
140-144	32
145-149	33
150-154	34
155-159	35
160-164	36
165+	37

BENEFIT IN KIND (BIK) 2020 RATES

Cars registered before 6 April 2020

CO2 (g/km)	Electric range (miles)	2020-21 (%)
0	N/A	0
1-50	>130	2
1-50	70-129	5
1-50	40-69	8
1-50	30-39	12
1-50	<30	14
51-54		15
55-59		16
60-64		17
65-69		18
70-74		19
75-79		20
80-84		21
85-89		22
90-94		23
95-99		24
100-104		25
105-109		26
110-114		27
115-119		28
120-124		29
125-129		30
130-134		31
135-139		32
140-144		33
145-149		34
150-154		35
155-159		36
160+		37

Cars registered from 6 April 2020

CO2 (g/km)	Electric range (miles)	2020-21 (%)
0	N/A	0
1-50	>130	0
1-50	70-129	3
1-50	40-69	6
1-50	30-39	10
1-50	<30	12
51-54		13
55-59		14
60-64		15
65-69		16
70-74		17
75-79		18
80-84		19
85-89		20
90-94		21
95-99		22
100-104		23
105-109		24
110-114		25
115-119		26
120-124		27
125-129		28
130-134		29
135-139		30
140-144		31
145-149		32
150-154		33
155-159		34
160-164		35
165-169		36
170+		37