New car tax changes revealed as these vehicle owners are set to pay even higher costs

New car tax changes revealed as these vehicle owners are set to pay even higher costs

Car tax charges will be introduced early next year for owners who have purchased an electric car under a salary sacrifice scheme. The updates could see motoosts forced to pay an extra £250 to use their vehicles on the road despite contributing zero pollution. 

This will leave a total of £297.90 which is then divided by a motorosts average income to determine an overall payment. 

Those who pay 20 percent income tax will need to pay juust £59.58 per year or just under 35 power months. 

However, those on 45 percent income tax will see charges rise to £134.06 per year or over £11 per month. 

Costs will rise even more from 2022 when tax rates increase to two percent. Pod Point says at this point the overall benefit in kind value will be £595.80.


Go Ultra Low says company car drivers who took delivery of a model before 6 April 2020 will also benefit from the zero percent charge this year. 

Alongside the savings electric car owners can also benefit from care tax VED changes and fuel savings. 

Despite the future increases, electric car experts have encouraged road users to “take advantage” for the lower monthly payments. 

Poppy Welch, Head of Go Ultra Low said: “The Government’s Benefit in Kind tax rates are the latest of a host of benefits on offer for people considering the switch to electric. 

“We’d encourage prospective EV drivers to take advantage of this incentive which will lower the monthly company car payments for electric cars significantly, and give employees the financial freedom to choose from a wide range of vehicles. 

“These changes will complement the existing benefits of driving electric, including lower running costs, a quieter, smoother drive and the flexibility of charging from home.” 

Published at Wed, 17 Jun 2020 13:26:00 +0000