Trade body urges Chancellor to keep tax rates low on electric company cars

15 Jun 2022

The British Vehicle Rental and Leasing Association (BVRLA) has urged Chancellor Rishi Sunak to keep benefit-in-kind (BiK) tax rates low on electric company cars to promote their usage amongst UK workers.

The BVRLA said that BiK tax rates for electric vehicles (EVs) are only known up to 2024/25, and that beyond this time, 'the government's intentions aren't clear'. It is calling on the government to 'provide as much foresight on future rates as possible' and ensure the tax on EVs is kept down to incentivise usage.

Commenting on the issue, Gerry Keaney, Chief Executive of the BVRLA, said: 'The strides we have made as an industry to phase out petrol and diesel cars before 2030 are clear – nearly 60% of electric vehicles on UK roads are company registered.

'The uncertainty caused by the lack of foresight beyond 2024/25, or by seeing a sudden jump in rates, will cause growth of EVs to stall. This needs to be addressed by the Chancellor in the Budget this autumn.'

Southampton Office

HJS Accountants
Tagus House
9 Ocean Way
Southampton
Hampshire
SO14 3TJ

Tel: 023 8023 4222

Winchester Office

HJS Accountants
6 Charlecote Mews
Staple Gardens
Winchester
SO23 8SR

Tel: 01962 842000

Reading Office

HJS Reading
3 Richfield Place
Richfield Avenue
Reading, Berkshire
RG1 8EQ

Tel: 0118 951 1115