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Company Car Benefits – 2020/21 & Later

HM Treasury has revised its benefit-in-kind (BIK) rates for
2020/21 forward. The main features are:

  • There are now two replacement BIK tables. One relates to vehicles registered before 6th April 2020 and the other to vehicles registered on or after 6th April
    2020.
  • The previously published BIK rates for 2020/21 have been shredded.
  • All 100% electric cars with zero tailpipe emissions will have a 0% BIK in 2020/21 increasing to 1% in 2021/22 and to 2% in 2022/23.
  • Different percentages will apply to cars with 1-50 k/gm emissions depending on the electric range figure. Note that for cars registered on or after 6th April 2020 the BIK rates will be 2% lower.
  • From 2023/24 the rates will be realigned and there will be only one BIK table again.
  • The announcement of rates for the next 3 years provides a degree of certainty for employers, employees and fleet operators. It also provides a tax planning opportunity – for example for individuals who are anxious to keep personal incomes below £100,000 to preserve their personal allowance intact

Copies of the replacement tables can be downloaded below. Do read the note at the top concerning diesel engines.

Cars First Registered Before 6 April 2020

Note – a 4% supplement applies to cars with diesel engines up to a maximum of 37%. This
supplement does not apply to cars that meet the Euro 6d emissions standard.

Cars First Registered From 6 April 2020

Note – a 4% supplement applies to cars with diesel engines up to a maximum of 37%. This
supplement does not apply to cars that meet the Euro 6d emissions standard.

 

 

C&H Stedman

For more info, give us a call on 01442 202650

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