EV company car

Angus3695

Hi 

I have not had a company car for sometime - but took a car allowance instead (taxed as income).

I am considering taking an EV company car (Tesla Model 3 for eg).  Which would have a BIK rate of 1% for this tax year and 2% thereafter.

as I haven’t been around company cars for a while I wasn’t aware of the rule that says you pay at least as much tax as you would pay on the cash Car Allowance that you give up to take the company car.

I’m fairly sure that ‘ULEVs’ are exempt from that rule and you only pay tax on the BIK value….  But I can’t find that on the HMRC website - can anyone help confirm this?

secondly - does the same BIK value carry in to the Child Maintenance Service calculation.

many thanks!

Grumpy_chap

Angus3695 said:

as I haven’t been around company cars for a while I wasn’t aware of the rule that says you pay at least as much tax as you would pay on the cash Car Allowance that you give up to take the company car.

I had not heard of this rule before.
The following link may assist:
https://www.clm.co.uk/company-car-tax/#cashalternative

sheramber

Estimating the tax you’ll pay

You can see how much tax you might pay with HMRC’s company car and fuel benefit calculator.

http://cccfcalculator.hmrc.gov.uk/CCF0.aspx