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2020 Impact of new emissions tests. Benefit in Kind for Electric Vehicles

After 2 hellish years trying to get our heads around the repercussions of the emissions scandal, combined with waiting for the Government stance on electric and hybrid vehicles we have some clarity. 

It’s a mixture of good and a bit of bad but overall reinforcing the message to companies and their drivers to clean up their fleets Consumers will also see increases mainly as Road Tax increases have slipped under the radar as well as co2 adjustments.

co2 Changes from April 1st

From this date, all new registrations will reflect their new, long-awaited official emissions figure. Many cars will see an increase which will affect a) Road Fund Licence and b) Benefit in Kind calculations

For Contract Hire vehicles the leasing company includes Road Fund Licence in the price you pay, so if the co2 goes up your road tax may increase too. It is well worth considering taking a pre-registered or stock vehicle in the next few weeks. This applies as much for personal contracts as it does for business. 

We are expecting to see even more special offers, stock deals and pre-regs to get you a bargain.

Electric Vehicles 

From April 6th Benefit in Kind on most electric vehicles drops from 16% to 0% for 2020/21 financial year, rising to 1% and 2% over the next two years. After that we are uncertain but this is clearly a huge incentive to get your drivers, where possible considering the electric option. Some customers are taking stock now taking a few weeks at 16% then falling to 0, however with lead times typically quite lengthy it might be best to get them ordered and to arrive after this date. 

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5th of February 2020

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