Re:Electric car drivers in the UK must pay tax from 2025
by robga on Thursday November 17, 2022 @04:53PM
(#33646382)
Also, the Benefit In Kind (BIK) tax is rising from the current 2% to 3%, 4%, 5% over the next three years.
On a £40k car, this means the assessed benefit will rise from £800 to £2000 over three years. For a 40% tax payer, this means an increase from £320 to £800pa. Half that for a 20% tax payer, obviously.
Given most new EV registrations are corporate and may attract BIK, this will possibly cost the average EV owner more than the £165pa road tax increase.
On a £40k car, this means the assessed benefit will rise from £800 to £2000 over three years. For a 40% tax payer, this means an increase from £320 to £800pa. Half that for a 20% tax payer, obviously.
Given most new EV registrations are corporate and may attract BIK, this will possibly cost the average EV owner more than the £165pa road tax increase.