Big Changes to Benefit-In-Kind coming from 6th April 2020!
Posted on: 02/02/2020
As some of you may know, there have been some major changes throughout the motor industry over the last 2-3 years in the way that cars are tested for MPG’s and CO2 emissions.
This has been an extremely difficult time for most manufacturers, with nearly everyone suffering on new car sales due to factory stops, extended lead times due to delayed testing and confusing for potential customers looking to buy a new car with NEDC (New European Driving Cycle) and WLTP (Worldwide Harmonised Light Vehicle Test Procedure) figures leaving customers baffled. (in short, the new test means that CO2 figures have increased and MPG figures have decreased due to the new ways that vehicles are now tested so in essence more true to life than they have ever been)
Add on top of this Brexit and the recent election which has had both retail and business customers alike waiting to make decisions before purchasing, it really has been a rollercoaster of a ride.
So now it is time for another change which is happening in April, which will affect nearly every company car driver.
The government gave us some clarity of benefit in kind back in July 2019 releasing the planned BIK rates for the next 3 years however any car registered from April 6th 2020 or after is going to be subject to the new WLTP CO2 figure which in some cases ‘Fleet News’ has reported that they have seen an increase of up to 30% (ouch)
Due to this the demand for plug in hybrid and electric vehicles has never been stronger, along with the 0% for electric cars from April, businesses are quickly realising that electric cars in one form or the other really do make sense, not just from the drivers point of view but also from a business taxation point of view due to the 100% first year allowance which is eligible on cars with a CO2 limit under 50 g/km.
Audi UK have just recently brought back the A3 Sportback 40 e-tron plug in hybrid with CO2 of just 45g/km, this joins the Q5 50 and 55 TFSI e plug in hybrid and we are soon to have the A6, A7 A8 and Q7 TFSI e plug in hybrids join the mix at some point early this year. These join forces with the amazing all electric e-tron which is available in both SUV and Sportback body styles.
The comparisons I ran on the A3 Sportback base model petrol and diesel cars against the A3 Sportback e-tron will give you an idea of the changes that are happening however should anybody need any further information, have any questions or needs any advice then please do not hesitate to get in touch on 01202 775050.
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