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

Read More News at : https://gmpdrivercare.com/news

Follow us on Facebook: Click Here

Twitter: Click Here

Linkedin: Click Here

Or to read our latest Magazine visit driverlinkmagazine.com

Subscribe !

Subscribe !

Join our mailing list to receive the FREE GMP Driverlink Magazine and offers from our team.

 

You have Successfully Subscribed!

Share This