5 October 2021

The rise of EVs and the benefit of company cars

With the country working towards bold environmental goals, the switch to EVs is having a huge impact on company car schemes and the tangible benefits it can provide.

Latest figures from HMRC and the Association of Fleet Professionals (AFP) has shown the take up of company cars hit a low point in 2019/20 due to high Benefit-in-Kind (BIK) rates in place at the time. However, the published data also shows that since then the fleet sector has seen a huge revival in both traditional company car offerings and salary sacrifice schemes following the introduction of the 0% BIK rate introduced in 20202/21 for zero emissions cars.

The BIK rate will only rise to 2% in 2022/23 and is frozen at that level until 2024/25 allowing companies and employees to benefit from this tax rate and help speed up the adoption of EVs.

We recently launched our salary sacrifice offering and have expertise in making the transition to EV’s, if you’d like to discuss your fleet and its policy speak to one of the team today: 01908 288 400.