Time for an Electric Company Car?
The government has announced that there will be a zero P11d benefit for the drivers of electric cars for the year 6th April 2020 to 5th April 2021 only. The legislation for the change will be included in Finance Bill 2020 and it is proposed that the benefit will increase to 1% of list price in 2021/22 and then 2% in 2022/23.
The zero taxable benefit for 2020/2021 will also apply to hybrid cars emitting no more than 50 grams of CO2 per kilometre with a range using its electric motor of at least 130 miles, but only for cars first registered on or after 6 April 2020. For those registered before 6 April 2020 the scale charge will be 2%. However, there is one significant problem; there are currently no hybrid models that meet the requirements set by the Government.
However businesses are advised to wait until 6 April 2020 as the P11d scale charge for electric cars is currently 16% of original list price for 2019/20.
Click here for our guide to company cars and their tax implications.
If you require any assistance please contact our Tax Partners, Steve Crompton or Lucy Williams, on the details below:
Partner – Head of Tax
direct dial: 01942 292541
mobile: 07790 840394
direct dial: 01942 292543
mobile: 07807 053494