Tax incentives are vital in keeping the EV market buoyant
By Thomas McLennan, head of policy and public affairs, BVRLA
The BVRLA’s latest Leasing Outlook report shows that battery electric vehicles have overtaken petrol to become the most popular fuel type on the BVRLA’s leasing fleet. In total, EVs account for 32% of new orders and dominate the order books for company and salary sacrifice cars. The rental and leasing sector could hit the phase-out target with years to spare.
Thomas McLennan, head of policy and public affairs, BVRLA
But this promising and optimistic picture will only continue if the Government resists the inclination to pull the handbrake by introducing a major hike in Benefit-in-Kind tax. The BVRLA is urging the Government to support the uptake of electric cars by keeping BiK rates low and giving foresight beyond the current 2024/25 cut off – and highlighting the success of the tax regime for electric cars to date.
We are now in a position where rates are only known up to 2024/25. Beyond this date, the Government’s intentions aren’t clear. The BVRLA is calling on HMRC to provide as much foresight on future rates as possible and to keep the tax on electric vehicles down to continue this massive success story. This is particularly important for the burgeoning salary sacrifice market, where BVRLA members are helping thousands of basic rate taxpayers access a new battery electric vehicle for the first time.
The momentum for EV purchase relies on tax incentives. With a recession and rising interest rates looming, business confidence falling and the Plug-in Car Grant gone, a sudden jump in rates will cause the growth to stall. Drivers need to know what their tax bills will be. This needs to be addressed by the new Chancellor in the next Budget.
To raise awareness among MPs for the vital tax incentives, an event was held outside the Houses of Parliament in July, when a selection of industry experts from the BVRLA, Octopus, Tusker and Zenith highlighted the positive outcomes that will come with more years of tax foresight, keeping BEV BiK rates low, and staggering any increases to avoid a sudden hike. MPs were asked to pledge their support to the #SeeTheBenefit campaign and encourage the Chancellor to act in the next Budget.
The BVRLA is also encouraging industry professionals to write to their local Member of Parliament to educate them on how company car schemes are vital in the move to EVs. Via a convenient template on the BVRLA website, letters can automatically be created and issued to MPs, sharing the positive results seen by the current low levels of BiK tax and warning of the detrimental impact that raising rates by too much too quickly will have on the UK’s Road to Zero.
Full details of the #SeeTheBenefit campaign can be found on the BVRLA website.
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BVRLA urges fleet sector to help lobby on low EV BiK rates
The BVRLA is urging the Chancellor to support the uptake of electric cars by keeping Benefit-in-Kind rates low and giving foresight beyond the current 2024/25 cut-off – and it’s calling on the fleet sector to help support its #SeeTheBenefit campaign.
