Why choose the Jaguar I-PACE as your next company car?
On 6th April 2020, the UK’s Benefit in Kind (BIK) rules (often referred to as company car tax) changed for pure electric vehicles (BEVs). This means that for brand new company cars that are fully electric, in 2020-21, there is no company car tax due at all. This will rise to 1% in 2021-22 and 2% in 2022-13. This means that employees choosing an I-PACE as their company car now, or in the near future, could be saving thousands.
BIK rates explained
When a company car is provided for an employee, who also uses the vehicle for personal use, this is considered a ‘benefit’ of their employment and is therefore taxable, just like standard salary is.
To get to the BIK rate, the car’s P11D value (which is essentially the list price, plus any optional extras, VAT and delivery charges) is factored in, along with the vehicle’s emissions and whether the employee is a 20% or 40% taxpayer.
For conventional combustion engine cars, the percentage of P11D that the employee needs to pay tax on for their company vehicle, registered after 6th April 2020, could range anywhere from 12% – 37%. For example, an Audi Q7 (which comes in the highest band at 37%) would cost a 20% taxpayer upwards of £4,000 per year in company car tax and a 40% taxpayer would need to pay more than £8,000 per year.
If your employer also pays for your personal fuel for your company car, you’ll also need to pay tax on this benefit.
With electric cars, like the Jaguar I-PACE, there is no BIK at all to pay in 2020-21, just 1% in 2021-22 and 2% the following year. There is currently no tax due on workplace electricity used to charge your I-PACE either. This difference in BIK rates makes the I-PACE a great option for those looking for a premium company car with more to offer. With zero emissions, a range of up to 292 miles per charge and incredible drivability, the I-PACE is the perfect combination of performance, technology and style.
If you would like to test drive the I-PACE, contact your closest Hatfields retailer to book a COVID-safe appointment.
