28 September 2021

Government commits to keeping BIK tax rates low for company cars until 2025

The announcement comes as part of the Governments roadmap to ending the sale of new diesel cars and vans by 2030 with hybrids following in 2035.

The announcement comes as part of the Governments roadmap to ending the sale of new diesel cars and vans by 2030 with hybrids following in 2035.

The Treasury originally introduced a 0% BIK tax rate for pure electric company cars in 2020/21 which would then rise to 1% in 2021/22. The Government had previously published company car tax rates up until 2024/25 with the BIK rate for zero emission cars rising to 2% in 2022/23 and staying for the following two years.

Included in the report which can be found here, was a further a commitment to keep the plug-in car and van grant to at least 2022/23 with an investment of £582 million.

A key part of this transition is the charging infrastructure which the Government is investing £1.3 billion in to accelerate the rollout of charging infrastructure on motorways, on streets, in homes and workplaces.

With the low tax rates on offer from the Government as we move towards electrification now is the perfect opportunity to switch your fleet and take advantage of the cost savings.