Low company car tax is the “best way” to achieve net zero., Electric Vehicle News Bitesize
Low company car tax is the “best way” to achieve net zero., Electric Vehicle News Bitesize

Low company car tax is the “best way” to achieve net zero. Subscribe to Electric Vehicle News Bitesize Podcast for FREE!

A campaign to persuade the Government to keep benefit-in-kind tax rates low for electric company cars took its case to Parliament, last week.

The #SeeTheBenefit campaign, organised by the British Vehicle Rental and Leasing Association, gave MPs a salary sacrifice briefing.

More than 30 members of Parliament from different political circles came to share their views on the electric vehicle market and learn more about the critical role of corporate car taxes.

The campaign calls on the chancellor to support the introduction of electric vehicles in the autumn budget by giving a tax perspective beyond the current 2024/25 tax limit and keeping the BIK rate lower for longer.

The BVRLA says that this is particularly important for the burgeoning salary sacrifice market where BVRLA members are helping thousands of basic rate taxpayers access a new battery electric vehicle for the first time.

At the Westminster event, active MPs explored affordable electric vehicles and spoke with payroll experts from BVRLA, Octopus Electric Vehicles, Tusker and Zenith.

BVRLA director of corporate affairs, Toby Poston, explained: “The UK currently has a world-leading policy that is democratising access to EVs. Low company car tax rates have been the single biggest driver of Electric Vehicle uptake to date.

“With over 70% of petrol or diesel company car drivers due to renew within the next two years, keeping Electric Vehicle BIK rates low is the best way for the UK to meet its net zero targets.”

Poston said the BVRLA was delighted that so many MPs attended the briefing, signed their deposit carts, and agreed to support their campaigns for more BIK vision and effective long-term incentives.

By June, the BVRLA is encouraging industry professionals to write to local councillors to share the event and invite them to drive-in.

More than 1,000 letters were shared, leading to strong engagement over the past week and a solid foundation for the campaign as the expected fall budget looms.

Poston concluded: “As we weather the cost-of-living crisis, drivers need to know what their tax bills will be.

“The Government needs to keep up the fragile momentum it has created in the face of the current economic headwinds, now is not the time to accelerate tax rises.”

The Association of Fleet Professionals (AFP) previously told Fleet News it was concerned that the recently cancelled plug-in car subsidy scheme could signal a shift in Benefit-In-Kind electric vehicle benefits.

Removing subsidies shows that the government believes the Electric Vehicle market is now at a point where it can do anything to accelerate and support adoption.

For more information on BVRLA events and how to get involved, visit the BVRLA website.

Please give Electric Vehicle News Bitesize Podcast a 5 Star Review to help us grow our audience.

Subscribe to the Electric Vehicle News Bitesize Podcast for FREE on Apple PodcastsGoogle PodcastsOvercastDeezer, Breaker, CastboxPocket CastsRadioPublicStitcherAmazon Music, AudibleGaana, Samsung Podcasts, Google News and the Electric Vehicle News Bitesize Alexa Skill.

For more Articles and Episodes search Porsche believes it can make more profit by selling electric cars.

Low company car tax is the “best way” to achieve net zero., Electric Vehicle News Bitesize
Subscribe to Electric Vehicle News Bitesize Podcast for FREE!