HOW BENEFIT IN KIND CAN HELP YOU DRIVE AN ELECTRIC VEHICLE FOR ALMOST FREE!
Benefit in Kind is capped at 2% on all electric cars until 2025.
Benefit in Kind is capped at 0% on electric vans until 2025.
As a result, employers and employees can make substantial savings on Tax and National Insurance.
HOW DO I GET AN ALMOST FREE EV?
OPTION 1 – BENEFIT IN KIND
If an employee drives a car for business purposes and also has the car for personal use, they are taxed by the Government. However, if you choose an electric car you will only pay 2% Benefit in Kind Tax until 2025. In regards to electric vans, you will pay 0% Benefit in Kind until 2025.
OPTION 2 – SALARY SACRIFICE
If you don’t have a company car or van you can still access these benefits using the salary sacrifice scheme. Here, an employee and employer sign an agreement (which EVision can provide). The employer pays for the car or van and the employee takes a reduction in salary in exchange. The employer saves money on the reduction in order to pay for a fully electric vehicle.
Benefit in Kind Explained
Benefit in Kind (BIK) tax for electric vehicles (EVs) is a tax incentive provided by governments to promote the adoption of environmentally friendly transportation. It is a tax on the non-cash benefits employees receive from their employers, such as the use of a company car.
The benefit of BIK tax for electric vehicles is that they enjoy lower tax rates compared to traditional petrol or diesel vehicles. This is because EVs have significantly lower carbon emissions, making them more environmentally friendly. As a result, individuals and businesses choosing electric vehicles as company cars can save a substantial amount on their tax liabilities.
The lower tax rates incentivise the adoption of electric vehicles, supporting the transition to sustainable transportation and helping to reduce air pollution and combat climate change. Additionally, driving an electric vehicle brings additional cost savings through reduced fuel expenses and potential grants or subsidies for purchasing or installing charging infrastructure.
Overall, BIK tax incentives for electric vehicles encourage greener transportation choices while providing financial benefits to individuals and businesses.
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