HMRC Tax Changes
HMRC wants people to go green wherever possible. As such they are rewarding people who drive more environmentally friendly cars.
So cars with lower CO2 emissions are taxed at a significantly lower rate compared to those with higher emissions.
The Benefit in Kind tax on electric company cars has dropped to 0%.
As a result, employers and employees will make substantial savings on Tax and National Insurance.
This is how you could potentially drive a free electric company car this 2020/21 tax year, all paid for by HMRC.
The BiK tax will rise to only 1% from April 2021 and up again to only 2% in from April 2022.
Benefiting from a free electric company car won’t last forever, however you can still make huge savings over the next couple of years!