BIK ON ELECTRIC CARS

LEARN MORE ABOUT THE BENEFIT IN KIND SAVINGS ON ev’S

In the UK, if your employer offers you a company car for private use as part of your employment package, you have to pay a separate kind of tax known as Benefit In Kind or BIK. This Tax is deducted from your pay as the Car is seen as a “Perk” or “Benefit” of employment. The rate you pay depends on the Vehicles P11D Value, which is calculated by the value of the Vehicle including VAT & Optional Extras, and the amount of Carbon Dioxide Emissions (CO2) the vehicle emits or BIK Band.

Rates for Diesel and Petrol Vehicles are ever increasing as the government seeks a change in attitude to the way in which we travel, with Zero Emission vehicles being heavily subsidised. From 2020, the rate you pay for a Zero Emission vehicle will be set at 0%, increasing to 1% in 2021, and 2% in 2022. This means massive potential savings on Tax alone, without the servicing and fuel cost savings that EV’s bring. Exactly how much could you save though?

combustion vs electric car benefit in kind comparison

Take a look at the comparison below. We’ve taken two big hitters in the Automotive world, a Range Rover 4.4 SDV8 and a Tesla Model X Long Range. The Range Rover is synonymous with opulent travel, and was the original “Chelsea Tractor” being the ultimate in Luxury School Run weaponry. What better way than to fight fire with its Eco-Friendly rival the stunning Tesla Model X.

Both cars are huge and similarly priced at around £87,000, but are they so close when it comes to Tax? Take a look below…

£25,633

saving ON BIK TAX FROM 2020-2022 by choosing a Model X over a Range Rover.

243g/km

LESS CARBON EMISSIONS BY SWITCHING TO A MODEL X

£1005

AVERAGE SAVING ON FUEL OVER 60,000 MILES

Interested in the huge tax savings that can be made by choosing an electric vehicle as your next car? The Tesla Model X has proven to be one our most popular models, full of equipment, offering a comfortable ride and a superior driving experience, demonstrating that it can more than match the Range Rover. Equally there are number of other EV options that are suitable for business mileage.

Why not give the Volt-Age team a call for further information and to hire some of the latest EV models on the market. Many of the models we have in stock and available to hire are hugely popular with businesses and commuters such as our Tesla’s, the Audi E-Tron and the Hyundai Kona.