There’s good news afoot, company car drivers and business owners can now make significant savings by choosing to lease a low or zero emissions cars like a BMW plug-in hybrid or the all new MINI Electric.
We know that many business owners, whether running a fleet of company cars or a single vehicle, have been put off by the tax implications of running hybrid and electric cars, as well as their slightly higher prices. Despite the lower fuel prices, Road Tax, the London T-charge and the Congestion Charge, which are all reduced or don’t apply to electric cars, the maths didn’t always come out in your favour.
Happily, that’s all about to change for the better. From 2020, the Government has decided to put its money where its mouth is. It's introducing significant changes to company car tax, in order to encourage businesses to upgrade to newer, cleaner vehicles.
Recalculating company car tax
Company car tax, officially known as Benefit in Kind Tax (BiK), is currently calculated according to the P11D value of the vehicle, its CO2 tailpipe emissions and the employee’s income tax band.
From April 2020, tax savings on pure battery and efficient plug-in hybrid electric vehicles will increase dramatically:
- Company car drivers who go electric will pay zero BiK tax from April 2020
- This will increase to 1% from April 2021 and 2% from April 2022
To help businesses with large fleets make the switch from petrol to full electrification, there will also be tax breaks for drivers of plug-in hybrid models with shorter electric-only ranges.
Tax-efficient car leases on BMW or MINI models
If you're a company car driver, a business owner or a fleet manager, you can now reduce your business motoring costs, your carbon footprint and your company car tax simultaneously. Simply by switching to a BMW or MINI electric or plug-in hybrid. You'll be saving money and helping the environment – a win/win situation.
- The cutting edge, all-new MINI E with zero CO2 emissions – so you’ll also benefit from the Government’s current £3,500 Plug-in Car Grant towards the purchase of new pure-electric vehicles
- The MINI Countryman PHEV range – the perfect mix of practicality and performance
- The all-electric BMW i3 – far more than simply a green option, this car is an investment in the future
- The BMW Plug-in Hybrid range – a leap in modern mobility that delivers tomorrow’s driving experience today; models available include the spacious 2 Series Active Tourer, the 3 Series, 5 Series and 7 Series saloon, and the i8 Roadster.
Why choose Dick Lovett for your company car
At Dick Lovett, we have a wealth of experience helping businesses, the self-employed and company car drivers make the right choices. Our MINI and BMW business specialists can show you how BMW and MINI low-emission alternatives could work for you and your business, helping you to cut costs and improve your green credentials.
We make it our business to find you the best deal and we’re confident we can match any price in the market. We can tailor a quotation to your precise needs and provide expert advice on buying a car or leasing through your business, including the company car tax payable based on your circumstances.
Get in touch with our BMW and MINI business specialists today to find out more.
Not quite ready to go electric yet?
We understand you or your business may not be in a position to make the switch to electric vehicle right now. If so, our business team can advise you on all new BMW and new MINI models to help you find the car that works for you, saves you money and sets you on the right road to a smaller carbon footprint.