The new car tax upgrades will become the point electric vehicles make “financial sense” for UK motorists which will boost the take-up of the models across the UK. Car tax changes have previously been described by experts as game changing and will focus solely on boosting the number of electric models on the road.
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VED changes came into effect on 1 April and will ensure petrol and diesel models are pushed into a higher tax band through changes to emissions testing.
Alongside this, expensive electric vehicle owners will see the sole remaining £320 charger for electric car owners removed.
Updates to benefit-in-kind rules came into effect yesterday and will see tax on fully-electric models purchased through company car schemes scrapped from 16 percent to zero in a radical change.
Costs will rise by just one percent next year and to two percent by 2022 but this will then be frozen for a further two years.
Ian Johnston, CEO of electric car socialists Engenie has backed the new upgrades which he claims will boost momentum for electric cars in the UK.
He said: “The elimination of benefit in kind tax for electric vehicles marks a significant milestone in the journey towards mass adoption.
“It now makes complete financial sense for millions of drivers across the UK to go electric.”
The expert also claims the changes could have a major impact on the second hand electric car market in the UK.
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Ian Johnston, CEO of electric car socialists Engenie has backed the new upgrades which he claims will boost momentum for electric cars in the UK.
He said: “The elimination of benefit in kind tax for electric vehicles marks a significant milestone in the journey towards mass adoption.
“It now makes complete financial sense for millions of drivers across the UK to go electric.”
The expert also claims the changes could have a major impact on the second hand electric car market in the UK.
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- Car tax updates may see drivers save £7,000
Ian Johnston said: “Not only will this directly increase the numbers of electric vehicles on the road today.
“It will also give a huge boost to the all-important second hand electric vehicle market, building momentum for wider electric vehicle adoption in two to three years’ time.”
The majority of electric car owners were already fully exempt from VED road tax charges before the policy came into effect.
However, scrapping the expensive car tax charge extends the tax breaks to owners of all fully-electric models.
Tax breaks on company benefit-in-kind rates is expected to lead to a resurgence in those taking up electric cars.
The new neasures are aimed to provide an upfront price parity between electric models and petrol and diesel cars.
Electric owners will then likely be drawn towards extra incentives such as fuel savings and no congestion charge payments.
Fiona Howarth, CEO of Octopus Electric Vehicles said: “EVs aren’t just good for our planet, they’re unparalleled in their cheap running costs.
“Our scheme removes the initial barrier of a top-quality new car’s cost to ensure they’re accessible and extra-affordable.”
She added: “If you’re a business owner or employee, you can benefit from the new tax break to support a cleaner transport system – as well as a potential £7,000 saving.”
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