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Posted by Admin Posted on 02 July 2019

Well I should be writing this blog on changes that would have occurred if we had left the EU, well that never happened.  We are still in the same position as when Jo wrote her last blog back in March.

The government has now announced that all new cars in the UK will be effectively zero emission by 2040, under new plans to tackle air pollution.  The government is under pressure to bring forward this deadline and ban all sales of new petrol and diesel cars by 2032.  So how will this work? Well, by banning the sale of new petrol and diesel cars.  They have described the report on this as being very vague.

So, what are the benefits of having an electric car? Pure electric cars are exempt from paying vehicle excise duty, to offer full support for those opting for the very cleanest cars and vans.  All cars that emit less than 75g/km co2 will pay less road tax in the first year.  The benefit in kind is currently at 16% for the 2019/20 year.  However, the government has announced it will cut benefits in kind rates for zero-emission vehicles down to 2% to encourage their use as company car, (from the 2020/21 financial year onwards).

You also have the choice of salary sacrifice car schemes which are a popular benefit, allowing employees to sacrifice a portion of their monthly salary in return for a new car.  Savings are generated because the employee is no longer liable for income tax on the proportion of the salary they sacrifice.  It also has the bonus of improving employee satisfaction and retention.  You have a role to play in ensuring you choose the right car for employees’ needs.  Pure electric cars are perfect for those who travel short distances, while an electric car with a range extender works well for employees with a long but predictable commute.

Bye for now….