The end of company car tax as we know it? The team at Car-E-Lease understand the importance of moving towards more sustainable automotive future.
Eco car leasing is something which has grown significantly during 2019 and this will be known as the “kick-start” year where the Government, manufactures and suppliers realised changes needed to take place to improve our world on a local and global level.
Cars, and vans, are not the only polluting aspects of our daily lives but they do represent an obvious issue – 80% of NO2 in Greater Manchester is due to transport and measures to target harmful gases and particulate matter are beginning. In Greater Manchester, like every other local authority across the UK, plans are being put in place for a “Clean Air Zone” which will see certain categories of vehicles being targeted; either you change or you get charged.
The roadshows are being put in place not only to inform and consult with businesses but to introduce solutions for helping businesses (and individuals) to change – electric cars, charge points, grants and fleet reviews are all available at these events.
However, as part of the bigger picture the Government has been somewhat inefficient in confirming to businesses exactly what will happen with company car drivers moving forwards. Until recently we only knew the tax position for the year 2020/21, in that electric cars were going to offer a 2% BiK position which creates an almost “free” position for those operating the eco vehicle.
However, we didn’t know what would happen after then; this just didn’t work as many of our lease contracts are 2, 3 and 4 years – business owners and fleet manager need certainty in order to create confidence.
Thankfully our industry has consulted with the Government and help put together a plan moving forwards for car tax and we now have suggested data for tax years 2020 – 2023. For more info head over to the Government website.
So what is the new position for company cars? For cars registered BEFORE 6 April 2020 the company car bands will be frozen at the 2020/21 rates until 2022/23. For those registered ON or AFTER 6 April 2020 sliding scale of BiK bands has been introduced (although there are no big jumps year on year). The crucial point to note is the focus on the electric vehicles, or those low emission vehicles with a sizeable electric range:
· A 0g/km vehicle will generate 0% BiK in 2020/21 and only 2% by 2022/23 – to confirm a fully electric vehicle will be FREE of company car tax next year;
· A 1 – 50g/km will generate exactly the same as above so long as it can travel more than 130 miles on an electric charge;
· A 1 – 50g/km will generates 3/4/5% so long as it can travel between 70-129 miles on an electric charge; and
· A 1 – 50g/km will generate 12/13/14% so long as it can travel up to 30miles on an electric charge (most PHEVs).
This will present an incredible boost for the electric contract hire and leasing industry as those drivers who are covering the appropriate miles for a fully electric vehicle will benefit massively. It also does suggest the Government are offering some type of “carrot” to drivers; the news has recently talked of congestion zones, low emission zones and clean air zones which will penalise those higher emitting and more polluting vehicles.
While a necessary step, small businesses often feel frustrated and alienated by a tax or penalty forcing changes rather than a more incentive-based approach.
Of course, the individual car driver will need to ensure that their mileage is appropriate for an electric vehicle and, if necessary, convince their employer or fleet manger that the vehicle, and its costs, are suitable. Unfortunately, the driver v employer perspective may create some frustration and discussion!
Want to know more on selecting the right fuel choice or procuring an alternative fuel vehicle? Just head over to our Car-E platform at https://www.carlease.uk.com/car-e
Thank you also to RRG at Bury for allowing the team to photograph their eco demos. For more info on RRG, one of Manchester’s leading dealer groups.
In terms of the car shown, the Lexus UX HATCHBACK 250h 2.0 F-Sport 5dr CVT (Petrol Hybrid), this is based on the following configuration:
· Metallic – Graphite black
· Fabric/tahara leather – Black
· 18″ F Sport alloy wheels
As standard the car includes acoustic windscreen, privacy glass, rain sensing wipers, EBD, ECB, hill start assist control, secondary collision brake, traction control, Bluetooth, Lexus safety system with radar cruise control/road sign recognition/lane keep assist/sway warning/auto high beam assist, lane change flasher buttons, parking assist sensors, reversing camera, 7” Lexus navigation, 8” LCD touch screen navigation, auto dimming rear view mirror, electrically adjustable door mirrors (heated and folding), 2 front and 2 rear USB ports, DAB radio, body coloured externals, headlamp washers, heated front seats LED daytime running lights/front lights/headlights/taillights, climate control, active sound control, aluminium sports pedals, leather upholstery, LED interior illumination, 60/40 split folding rear seats, towing preparation, 18” alloys, remote central locking and an anti-theft system.
There are no additional manufacturer options to add to the car – you can however add some key packs:
· Premium Plus Pack – fully leather seats smart keyless entry, illuminated entry, 10.3” navigation and 8 speakers, power tilt steering wheel;
· Tech and Safety Pack – blind spot monitor, intelligence clearance sonar, rear cross traffic alter, head up display, wireless charger, 3-eye LED headlamps, high beam assistant adaptive variable suspension; or
· Takumi pack – this adds both of the packs above PLUS a 360 degree camera, 13 speaker Mark Levinson sound system, ventilated front seats, memory function for driver seat and outer doors mirrors with auto folding and tilt.
On the technical side company car and business users can note the P11d at £34,300.00 and CO2 at 97g/km. The 1987CC petrol engine/6.5 kWh battery will offer 68.9 combined MPG (EC), 49.6 (WLTP), 178ps and 8.5 seconds to 62mph.
Find the best Lexus UX leasing deals online @CarLease UK – or – check out some more SUV lease cars below…