“While companies will want to support their employees, there will already be salary increases to implement in the new tax year, which could force them to re-evaluate company car benefits.”
BiK tax is usually high for petrol and diesel cars; hence, salary sacrifice on ICE cars has typically not been very popular.
However, BiK rates on electric cars have been set by the Government at an incredibly low percentage up until 2025.
Pure electric cars were not subject to BiK taxes in the financial year between 2020 and 2021, with it being raised last April to one percent.
