'Incredibly easy' car tax method lets people drive the best electric cars - Tesla and Kia
Drivers can get their hands on some of the best electric cars on the market simply by making use of a salary sacrifice scheme, which one expert said is "incredibly easy" to sign up to.
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Benefit-in-Kind car tax rates have slowly been increasing in the past few years, with the Government looking to wean companies off of petrol and diesel vehicles. A petrol car emitting 100g/km emissions today pays 25 percent BiK - more than double the 13 percent BiK rate in 2013.
In comparison, an electric car or a hybrid vehicle which produces less than 50g/km and has an electric range of over 130 miles will be charged just two percent.
In 2022, the Government announced that the BiK tax contributions will remain the same until April 2025.
This has been done in the hopes that the freeze on BiK will encourage employees to choose electric cars over conventional cars.
The highest polluting petrol and diesel vehicles (over 170g/km) are taxed at a rate of 37 percent, with this bracket remaining the same since 2021 until at least 2027.
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Steve Tigar, co-founder and CEO of loveelectric.cars, explained how salary sacrifice schemes were helping drivers make the jump to electric
Speaking to Express.co.uk he said: "Electric cars are expensive. With the rising cost of living, most people are looking to save wherever possible.
“That’s why we’re passionate about salary sacrifice. With a favourable Benefit in Kind rate, our drivers save up to 50 percent on their new electric car lease, making EVs accessible and affordable to more people than ever.
“If you’re interested in the savings you can make on an electric car through salary sacrifice, you’ll need to make sure that your employer is signed up for a scheme.”
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Most salary sacrifice schemes, like loveelectric, are cost-neutral for employers, meaning it costs them nothing, with drivers benefitting from having a new EV.
The organisation works with some of the largest and most trusted leasing companies and over 300 dealerships across the UK.
That means drivers can access every type of EV available on the UK market - from entry models like the Fiat 500 to the Kia EV6 Estate and the Porsche Taycan.
Some of the most popular electric cars available through the scheme include the Tesla Model Y Hatchback, which has been touted as one of the most comfortable EVs in the UK.
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Drivers can also get their hands on premium Swedish-made Polestar 2 Fastback, which has been described as an “all-electric performance machine without compromise”.
Another of the newest models on offer is the all-electric Cupra Born Electric Hatchback.
The vehicle has an impressive range between 216 and 340 miles, with the car being based on the Volkswagen MEB platform.
Mr Tigar added: "It’s incredibly easy to sign up. The first step is your employer submitting an application. This is done online and takes no more than 10 minutes.
“Once your employer has been approved, employees get access to our app, where they can browse our range of electric cars and select their dream car.
“Our market-leading app is entirely customisable to your needs, with filters for your income, the desired length of the lease and lead times to name a few.
“As soon as you submit your order, we will notify your employer to approve the order and get the ball rolling."
With the BiK rates remaining frozen until 2025, many employers may look into the viability of introducing a salary sacrifice scheme to their employees.
While nothing is yet known about the future of the BiK rates past April 2025, the level for electric cars is expected to remain low, to ensure the electric revolution continues.