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BiK Rates Company Car Tax

Review choice lists and perk driver solutions to minimise tax burden, says Venson

Venson has published a free company car Benefit-in-Kind white paper intended to help fleets with making the right choices over the next three years.

Venson’s new free online guide has been published to help fleets understand the new company car Benefit-In-Kind tax rates

Written following the publication of the new rates from 2020-21, the free online guide addresses key questions about BiK as it highlights the tax advantages of embracing plug-in cars.

This includes reviewing choice lists and switching cars to electrics and plug-in hybrids where possible. For those fleet managers unable to adopt plug-in vehicles, the Venson guide sets out how to minimise tax costs associated with petrol and diesel vehicles, for example, opting for an RDE2-compliant diesel or finding alternative ways of travel with the advent of Business Mobility-as-a-Services (BMaaS).

It also recommends analysing perk driver requirements to ensure the right funding mechanism is used, while also re-evaluating grey fleet drivers.

Danielle Tilley, business development director at Venson Automotive Solutions, commented: “Now is the time to comprehensively review company car choice lists and profile driver journey and mileage usage per individual. The latest company car Benefit-in-Kind tax has a focus on electric vehicles, so fleet managers need to embrace the new drive-chain to limit employees’ tax burden.”

Tilley continued: “From our own findings, we know there is a greater willingness by company car drivers to adapt to an EV world, even though there are concerns over vehicle availability and the practicalities of being able to charge a vehicle at home. However, EVs are here to stay and are the future, and there are some generous tax incentives to help with the transformation.

“If we are going to meet the ambitious target set by the Government’s advisory Committee on Climate Change to end the sale of new petrol and diesel cars and vans by 2030 at the earliest, then in many cases it is just two fleet vehicle replacement cycles away. Therefore, fleet decision-makers need to be thinking ahead and factoring electric vehicles into their long-term fleet management plans.”

To download a copy of the white paper, click here.

For more of the latest industry news, click here.

Natalie Middleton

Natalie has worked as a fleet journalist for nearly 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. Natalie edits all the Fleet World websites and newsletters, and loves to hear about any latest industry news.