Is this the end of the road for (most) electric vehicles?
Let's not be coy about it - the majority of clients I see who have electric vehicles have purchased them not because they are trying to reduce their CO2 emissions, but because they are a VERY tax-efficient way to purchase and run a car through the business.
A very low benefit-in-kind value, coupled with no road tax, would seem to be a no-brainer for all but the most dedicated petrolhead.
Up to 2020/21, having a EV as a company car was entirely tax free for the employee AND the employer. But it's been nudging up ever since, with plans to increase the benefit-in-kind rates to 5% before the end of this parliament.
If you take a £50K EV, the "benefit in kind" cost between you and your business will have gone from £0 in 20/21, to £1,345 in 27/28. (assuming a Higher-rate taxpayer).
Not to mention that from April 25, EVs will now pay £190 road tax. Which is the same as my 8 year old diesel volvo.
Whether these tax changes are morally right or not isn't my place to say.
But I wanted to ask those of you who have a company car: will the hikes in the tax cost of running an EV have an impact on whether your next car is also an EV?
Or is tax just one of many factors you take into account when deciding to get a zero-emission vehicle?
H & M Prosser
3wOnce again people in the countryside are hit the hardest! I need a 4x4 for the line of work I'm in. Yes it's a V6 engine pickup as need the power to tow large trailers. Also need 4x4 to just get home during the winter! I'll be writing to my local MP about this! I'm not paying 2 grand road tax to drive on roads that are full of potholes! We need the Conservatives back in ASAP! A 4x4 out here isn't a luxury it's a matter of life or death if someone takes ill during a winter storm etc!