Company car tax rates frozen from 2022 to 2025

October 27, 2021|In KRW Tax news|By Keith Witchell

Buried in the Budget documents was some welcome confirmation that company car tax rates and bands will be frozen from 2022 through to 2025. This means that electric cars will have a BIK rate of 2% for each of the 2022/23, 2023/24 and 2024/25 tax years, while the BIK for hybrids and other cars will also remain the same for those 3 tax years. However, the van benefit and fuel benefit charges will continue to increase in line with CPI from April 2022.

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Keith Witchell