The latest figures from HM Revenue & Customs (HMRC) show that company cars continue to drive the transition to zero-emission road transport. The findings come as HMRC published its annual benefit in kind (BiK) statistics and commentary on company car and car fuel, for the 2022/23 tax year (ended 5th April 2023).
This year’s statistics showed that the number of employees receiving a BiK-able company-provided car had risen to 760,000 in 2022/23, up 40,000 on the previous year. HMRC data shows that 222,000 (or 29%) of these were were driving a fully electric, zero emission car.
Commenting on the release, Toby Poston, BVRLA Director of Corporate Affairs, said: “It is encouraging to see the number of company car drivers rising for the first time in seven years. This latest report highlights the leading role that BVRLA members are playing in putting EVs on the road and the huge financial risk they are bearing in funding this new technology.
“Anyone reading the national press or examining vehicle registration data and second-hand car prices can see that the electric vehicle transition is in a fragile position.
“We want to work closely with the incoming Government to ensure that they know exactly what is happening with the used market, ZEV Mandate and charging infrastructure, and can respond accordingly.”
HMRC notes that the introduction of voluntary payrolling of company car benefits in April 2016 has led to some incompleteness in their data, with the total number of company cars likely to be underestimated.
However, the trends are clear. Compared to three years prior, in 2020/21, there were only 50,000 fully electric company cars provided. This more than doubled to 125,000 in 2021/22 and grew significantly again to the 222,000 shown in the latest figures. The total income tax liability for all company cars (not just EVs) for 2022/23 was £1.21 billion.
With over a quarter of all company cars being fully electric, the growing percentage of EVs as a proportional of total company cars (from 7% in 2020/21 to the 29% in 2022/23) has been a major contributor to the reduction in CO2 emissions from company cars.
Twenty years ago, in 2002/03, 58% of company cars had CO2 emissions above 165g/km. In contrast, the current stats show that in 2022/23, only about 2% of company cars emitted more than 165 g/km.
The latest BVRLA figures reported in the Quarterly Leasing Survey suggest that the trend of electric vehicles as a proportion of total company cars will continue to grow. The BVRLA will continue to push for BiK certainty, which has enabled this successful transition.
If you have any comments on the HMRC statistics, email them to [email protected].
Benefits in kind statistics: June 2024 - GOV.UK (www.gov.uk)
