Vehicle BIK tax

Government proposals from July 2019 and reflected on this website are still expected to be confirmed by a future Finance Act. The rates for 2022/23 will be frozen through 23/24 as well so drivers now have 4 years of figures to base decisions on. 

Electric vans will not be subject to the benefit charge from 6th April 2021, saving a 20% taxpayer £433 per year if they have more-than-occasional private use. For other vans there will an RPI increase in April 2020 to £3,490.

Fuel benefit

There will be an RPI increase on the car fuel benefit multiplier to £24,500 and the flat-rate van fuel benefit charge will increase to £666.

Fuel duty

No increase in fuel duty, despite this being an obvious target for environmental reasons. Likewise there was no attempt to tax aviation or marine fuel.

As an anti avoidance measure, there has been a tightening up of which groups can access fuel duty discounts. Only agriculture, fish-farming and non-commercial heating users will be able to use red diesel.

 

VED

Rates will increase on 1st April 2020 in line with RPI. ( Currently 1.8% )

A call for evidence has been made to look at ways of restructuring Vehicle Excise Duty. It looks as though the government want to make the charges more granular and encourage lower emission vehicles. This move appears to acknowledge the mistake made in April 2017 when most of the graduated banding was lost. 

Zero emission cars will no longer have to pay the "expensive car supplement". This was levied at an extra £320 per year for cars over £40,000 list price.

National Insurance Contributions

The Primary Threshold will increase in April 2020 to £9,500 as part of a plan to reach £12,500 in five years.

Electric vehicle grants

The Plug-in Car grant gets a £403 million extension to 2022-23, whilst vans,taxis and motorcycles get £129m.

From 12th March 2020 the car grant is reduced to £3,000 (from £3,500) and is no longer available on cars that cost £50,000 or more. As before, the PICG is only available on new fully electric vehcles.

In total this decreases the amount eligible electric cars from 110 down to 80 (decrease of 27.3%).

Corporation Tax

This is to remain at 19% for now. Our calculators have been adjusted for this, and no longer anticipate a fall to 17%.

Transport infrastructure

To support drivers to move away from polluting vehicles, the Budget announces investment in electric vehicle charging infrastructure, which will ensure that drivers are never more than 30 miles from a rapid charging station, provides £532 million for consumer incentives for ultra-low emission vehicles.

Also announced is a new £500 million per year Potholes Fund to boost local road maintenance budgets.