Rishi Sunak is delivering his first Budget as Chancellor tomorrow and it is predicted that new Benefit-in-Kind (BiK) rates will be ‘rubber stamped’.
This means a zero company car tax on battery electric cars for the new tax year. With employers saving thousands of pounds each year by switching to a pure EV, it is predicted eight out of 10 business employees who have currently opted out of a company car scheme are ‘likely’ or ‘very likely’ to move back to company cars.
This is game-changing for businesses, says Chris Russell, CEO and Co-Founder of renewable energy specialists Tonik Energy. Russell explains what he hopes to see from the Chancellor tomorrow:
“The government must use the Budget as an opportunity to lay a clear investment path that effectively defines the journey towards the UK’s 2050 road-to-zero targets. After suffering months of uncertainty waiting for confirmation of the new benefit-in-kind (BIK) tax rates, this is – perhaps – the most important spending announcement for UK businesses, company car drivers and the fleet industry.
“The Budget could mark the start of a new chapter on the UK’s carbon neutral journey. When Tonik Energy asked drivers about their attitudes towards zero emission electric vehicles, nearly two-thirds said they could see electric vehicles as their future, but admitted they are not ready to commit. As long as we see new incentives married with a realistic support package – one which is reassuring for drivers – the target of all new car sales being electric by 2035 – or even 2032 – will be attainable.
“Key to encouraging a move away from fossil-fuelled vehicles is for public and private sector organisations to work together to make the transition to zero emission vehicles as easy as possible. We hope to see the government make a commitment to building a robust and sustainable transport system that meets the charging needs of a nation and supports both the immediate and anticipated boom in clean, green motoring. Recognition that renewable energies are the linchpin to this change is paramount.”