Key tax updates post-Budget - Company cars
As part of the Government's plans to improve air quality, two measures were announced to incentivise the use of of electric cars.
First, there will be no benefit in kind charge if employers provide workplace electric charging points for electric or hybrid vehicles for employees. This will apply from April 2018 and is part of the Government's wider plans to invest in an electric charging infrastructure to support the transition to zero emission cars.
The second measure is a rise in the diesel supplement used in company car and car fuel benefit calculations. This supplement will increase from 3% to 4% from April 2018 for cars which do not meet certain standards. The charge will not impact on diesel vans and the diesel supplement does not apply to hybrid cars.
Employers may want to use these changes as an opportunity to consider the type of vehicles they offer to employees.