10 Jul 0% Benefit in Kind on Electric Cars Announced
Company Car drivers who drive electric will not have to pay any Benefit In Kind (BiK) tax in the financial year 20/21, this could benefit the million or so current company car users. Meaning there has never been a more compelling time to change to an electric car. EV’s were due to have a 2% BiK rate next year but the Government has just rethought that figure. The BiK will rise to 1% in 21/22 and 2% 22/23.
The Treasury says it “recognises the value of the company car market in supporting the transition to zero emissions technology” and also considers that by encouraging more company car drivers into low-emission cars, it can help generate “a competitive second-hand market in these vehicles.”
The government have also committed to invest £37 million in the EV charging infrastructure. The money is to be spent on 12 separate projects including developments in wireless charging, underground charging systems, solar powered forecourts, car park charging points and smart charging. One of the projects will develop a system of energy storage which allows semi-rapid charging using a low power grid connection. This should ease the need for substation upgrades that would otherwise be required for the amount of power required for rapid charging.
Char.gy have been given 2.3 million to put towards wireless charging systems for residential streets, meaning that cars can be charged whilst parked on residential streets without the need for cables. To be rolled out in Milton Keynes, the London Borough of Redbridge and in Buckinghamshire.
Urban foresight have been given funding for charging points in pavements in Dundee and Plymouth offering discrete charging for EV drivers without a driveway.
Michael Ellis, MP for Northampton North and Minister of State for Transport, said the investment would “transform” electric vehicle ownership and make the proposition more enticing for drivers.
“We’re charging up the transport revolution and investing in technologies to transform the experience for electric vehicle drivers,” he said. “Ensuring the charging infrastructure for electric vehicles is reliable and innovative is encouraging more people to join the record numbers of ultra-low emission vehicle users already on UK roads.
All of this comes on the day that environmentalists have said that the Government are failing to cut emissions at a fast enough rate in order to make a difference to climate change. The Committee on Climate Change (CCC) says that the Government must act on both the causes of climate change and the effect of rising temperatures before we host the Global Climate Change Summit next year. Immediate action must be taken for the UK to be seen as credibly acting on climate change. Current estimates are that the global temperatures will raise by 3 degrees by the end of the century, the CCC says that the UK will be unprepared for even a 2 degree rise. It is not just air quality to be considered but forestry, risk to health and even the risk of new species colonising the UK.
Emissions are required to reduce by 50% more a year than the current target and the ambitions targets the government has set cannot be met unless radical policies are drawn up in the next 12-18 months.
CCC Chairman Lord Deben worries that the Government are running the issue of climate change like a “Dad’s Army – a ram shackled system”
The good news is that overall emissions have fallen in the last year – with the help of the fall in fossil fuel burning for electricity in particular. Emissions from building have flat lined but emissions from aviation and transport have seen increases.
It has become clear that serious and immediate action must be taken and the Government are certainly trying to encourage people to make the switch to Electric Vehicles. With the announcement of 0% BiK, the £3,500 grant toward the cost of a new electric car and the OLEV grant of £500 toward the cost of an at home charge point they are certainly trying to appeal to people financially. By investing in the charging infrastructure also making it increasingly easier to run an EV there has never been a more compelling time to make the change. Get in touch to talk to one of our EV specialists who can walk you through your options. 01276474744 email@example.com