{"id":9449,"date":"2021-03-24T20:40:00","date_gmt":"2021-03-25T00:40:00","guid":{"rendered":"https:\/\/uk.holman.com\/uk\/?post_type=post&#038;p=8257"},"modified":"2024-01-11T16:07:49","modified_gmt":"2024-01-11T21:07:49","slug":"making-bik-incentives-work-for-your-drivers","status":"publish","type":"post","link":"https:\/\/uk.holman.com\/uk\/resources\/making-bik-incentives-work-for-your-drivers\/","title":{"rendered":"Making BIK Incentives Work for Your Drivers"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> &lt; 1<\/span> <span class=\"rt-label rt-postfix\">minute<\/span><\/span>\t\t\n\t<section class=\"header-variation-section white\">\n\t<div class=''><nav aria-label=\"breadcrumbs\" class=\"rank-math-breadcrumb\"><p><span class=\"last\">Home<\/span><\/p><\/nav><\/div>\n\t\t<div class=\"variation-inner\">\n\t\t\t<div class=\"header-left\">\n\t\t\t\t<div class=\"header-left-inner\">\n\t\t\t\t\t<h5 class=\"headline-5\"><\/h5>\n\t\t\t\t\t<h1 class=\"page-title headline-1\">Making BIK Incentives Work for Your Drivers<\/h1>\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"body-1\"><p>Holman Marketing<br \/>\nMarch 22, 2021<\/p>\n<\/div>\n\t\t\t\t\t\t\t\t\t\t<div style=\"width:70%;display:flex;justify-content:space-between;flex-wrap:wrap;\">\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t<div class=\"header-right\">\n\t\t\t\t\t\t\t\t\t<img decoding=\"async\" class=\"header-right-image-one\" src=\"https:\/\/uk.holman.com\/uk\/wp-content\/uploads\/2022\/09\/UK-England-Highways-EV-trials-Feature.jpg\" alt=\"A graphic of an electric charging pump\" >\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t<style>#holform-sub{margin-bottom: 0px !important;}<\/style>\n<style type=\"text\/css\">\n\t.header-variation-section .variation-inner .header-right{flex-basis:50%;}\n\t.header-variation-section .variation-inner .header-left{flex-basis:50%;}\n\t.noscroll{overflow:hidden !important;overflow-y:hidden !important;}\n#form-success, .form-success{height:100%;width:100%;display:none;}\n#success-container{display:flex;flex-direction:column;justify-content:center; margin:0 auto;text-align:center;height:100%;padding:40px;}\n#success-container a{font-weight:500;font-size:12px;color:#0069a7;margin:62px auto 0;text-decoration:none;border-bottom:2px solid #0069a7;}\n#success-container h2{margin:8px auto;color:#0069a7;font-size:24px;font-weight:500;}\n#success-container p{margin:8px auto;font-size:14px;font-weight:400;}\n#success-icon{max-width:60px;margin:0 auto;}\n.wpcf7 .wpcf7-spinner{display:none;}\n\t.noscroll{overflow:hidden !important;overflow-y:hidden !important;}\n\t.btn1.ghost{background-color:white;color:#0069A7;border:1px solid #0069A7;}\n\t.header-variation-section .video-box video-js{height:100%;}\n\n\t\t.btn1\n\t\t{\n\t\t\tbackground-color: #0069A7;\n\t\t\tbox-shadow: 0px 14px 23px rgba(0,0,0,0.08);\n\t\t}\n\n\t\t.btn1:hover\n\t\t{\n\t\t\tbackground-color: #2C9942 !important;\n\t\t\tcolor:white;\n\t\t}\n\n\t\t.btn2\n\t\t{\n\t\t\t background-color: transparent !important;\n\n\t\t\t color: #0069A7 !important; border: 2px solid #0069A7; \n\t\t}\n\n\t\t.btn2:hover\n\t\t{\n\t\t\t background-color: transparent !important;\n\t\t\t\/*background-color: #2C9942 !important;*\/\n\t\t\t color: #2C9942 !important;\n\t\t\tborder: 2px solid #2C9942; \n\t\t}\n\n\/* .header-variation-section .vjs-poster{background-size:cover;} *\/\n.header-variation-section .vjs-tech {\n  position:relative;height:auto;\\;\n}\n\/* .header-variation-section .video-js{\n\tdisplay:contents !important;\n} *\/\n.header-variation-section .video-js .vjs-control-bar{padding-left:45px;}\n\t\t.btn1\n\t\t{\n\t\t\tbackground-color: #0069A7 !important;\n\t\t}\n\t\t.btn1:first-child{margin-left:0;}\n\t\t.btn{box-shadow: 0px 14px 23px rgba(0,0,0,0.08);}\n\t\t\n.btn.ghost{background-color:white !important;border:1px solid #0069A7;color:#0069A7 !important;}\n.btn:hover{background-color:#2C9941 !important; color:white !important; border:none !important}\n.ghost:hover{background-color:#2C9941 !important; color:white !important; border:none !important}\n\/* .header-variation-section .variation-inner .header-right .cloudflare-video{height:61% !important;} *\/\n.header-variation-section .variation-inner .header-right:has(.cloudflare-video){margin-top:auto;margin-bottom:auto;}\n\n\t\t@media (max-width: 575px)\n\t\t{\n\t\t\t.header-right{flex-basis:98% !important;margin:0 auto;}\n\t\t\t.btn1 {width: 100% !important; margin-top: 20px !important;}\n\t\t\t.btn2{margin-left:0px !important; width: 100% !important; margin-top: 20px !important;}\n\t\t\t.header-variation-section .variation-inner .header-right{flex-basis:100%;}\n\t.header-variation-section .variation-inner .header-left{flex-basis:100%;}\n\t\t}\n\n\t<\/style>\n\t<\/section>\n\t\n\n\n\n    <section class=\"wysiwyg\" id=\"\">\n        <div class='inner'>\n            <p>Electric vehicles, or EVs, are the consumer and fleet market&#8217;s future, especially as they become more affordable and accessible. The interest continues to grow as the government adopts incentives to steer businesses away from traditional diesel vehicles and toward a greener alternative.<\/p>\n<p>The country&#8217;s Benefit-in-kind (BIK) tax is a CO2 emissions-based charge put in place to help reduce emissions through company fleets of any size, and for those drivers choosing <a href=\"https:\/\/uk.holman.com\/uk\/electric-vehicles\/\">EV&#8217;s<\/a>, it can have a significant impact.<\/p>\n<p>To help understand how BIK may impact your driver, we&#8217;ve asked some big questions.<\/p>\n<h2>What are the BIK benefits for electric vehicles?<\/h2>\n<p>The BIK tax rate is a direct reflection of the emissions your vehicles produce. For example, a diesel vehicle (which is not RDE2 Compliant) will receive a 4 percent annual BIK charge because of its higher emissions rate. In the case of electric vehicles, the vehicle has no emissions; as such, the government announced in 2019 that all-electric vehicles&#8211; or vehicles producing no emissions&#8211; purchased before 6 April 2020 would receive a zero percent BIK rate for next year.<\/p>\n<p>There are some more details around BIK rates, focused on mileage and battery power, which can be calculated on the UK government&#8217;s site <a href=\"https:\/\/www.gov.uk\/calculate-tax-on-company-cars\" target=\"_blank\" rel=\"noopener\">here.<\/a><\/p>\n<h3>So how does that change in 2021?<\/h3>\n<p>As we approach April 2021, the government has announced that this rate would increase 1 percent for the 2021\/22 taxable year, and then another percent in the year after for all vehicles purchased after the 6 April 2020 cutoff. From there, tax rates for the 2023\/24 and 2024\/25 years would remain at the standard 2 percent increase from 2022\/23.<\/p>\n<p>Consider how this steady 2 percent increase could compare to the standard 4 percent BIK rate for diesel fleets. What kind of savings could that lead to for your drivers and your ability to retain and attract staff with a more eco aware policy?<\/p>\n<h3>How does this relate to the 2020\/2021 budget?<\/h3>\n<p>The BIK tax is an added incentive to the government budget released in March 2020, in which zero- and low-emission vehicles receiving first-year allowances and VED exemptions. Electric vehicles are completely exempt from VED charges.<\/p>\n<h3>But what about hybrids?<\/h3>\n<p>While hybrid vehicles come with their own advantages for fleets&#8211; especially fleets worried about long drives and how that would impact a battery&#8211; they do not see the same perks as an all-electric vehicle. Hybrid vehicles would not be eligible for these BIK tax benefits. The government&#8217;s approach on hybrids had been to incentivize their use and take up, but this has since changed. However, hybrid vehicles see benefits in the budget in terms of first-year allowance discounts and discounted VEDs.<\/p>\n<h3>Where do I start?<\/h3>\n<p>We understand that switching on the <a href=\"https:\/\/uk.holman.com\/uk\/electric-vehicles\/\">electric fleet<\/a> is a significant decision for you and your business, and we&#8217;re here to help. <a href=\"https:\/\/uk.holman.com\/uk\/about-us\/contact-us\/\">Schedule an EV consult<\/a> to learn more.<\/p>\n        <\/div>\n    <\/section>\n\n\n\n\n\n\n\n\n\n\n\t\t\t<section class=\"content-feature-three\" id=\"\">\n\t\t\t<div class=\"inner\">\n\t\t\t\t<div class=\"feature-imgbox-mobile\"><img decoding=\"async\" src=\"\" alt=\"\" \/><\/div>\n\t\t\t\t<div class=\"content-feature-sec\">\n\t\t\t\t\t<div class=\"content-feature-content\">\n\t\t\t\t\t\t<div class=\"headline-4\"><\/div>\n\t\t\t\t\t\t<div class=\"feature-imgbox\"><img decoding=\"async\" src=\"\" alt=\"\" \/><\/div>\n\t\t\t\t\t\t<div class=\"feature-btn\">\n\t\t\t\t\t\t\t<a class=\"btn\" href=\"\" download=\"\">\n\t\t\t\t\t\t\t\t<span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\t\n\t\t\t\t\t\t\t\t<span>\n\t\t\t\t\t\t\t\t\t<img decoding=\"async\" class=\"icon\" src=\"https:\/\/uk.holman.com\/uk\/wp-content\/themes\/holman\/assets\/images\/white-download.svg\" \/>\n\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/section>\n\t\n\n\n\n\n\n","protected":false},"excerpt":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> &lt; 1<\/span> <span class=\"rt-label rt-postfix\">minute<\/span><\/span>","protected":false},"author":5,"featured_media":8262,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[131,132],"tags":[102,116],"blog-type":[91],"featured":[90],"legacy":[99],"topic":[],"class_list":["post-9449","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fleet-management","category-sustainability","tag-blogs","tag-electrification","blog-type-blog","featured-no","legacy-yes"],"acf":[],"permalink_manager":null,"_links":{"self":[{"href":"https:\/\/uk.holman.com\/uk\/wp-json\/wp\/v2\/posts\/9449","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/uk.holman.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/uk.holman.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/uk.holman.com\/uk\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/uk.holman.com\/uk\/wp-json\/wp\/v2\/comments?post=9449"}],"version-history":[{"count":2,"href":"https:\/\/uk.holman.com\/uk\/wp-json\/wp\/v2\/posts\/9449\/revisions"}],"predecessor-version":[{"id":17065,"href":"https:\/\/uk.holman.com\/uk\/wp-json\/wp\/v2\/posts\/9449\/revisions\/17065"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/uk.holman.com\/uk\/wp-json\/wp\/v2\/media\/8262"}],"wp:attachment":[{"href":"https:\/\/uk.holman.com\/uk\/wp-json\/wp\/v2\/media?parent=9449"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/uk.holman.com\/uk\/wp-json\/wp\/v2\/categories?post=9449"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/uk.holman.com\/uk\/wp-json\/wp\/v2\/tags?post=9449"},{"taxonomy":"blog-type","embeddable":true,"href":"https:\/\/uk.holman.com\/uk\/wp-json\/wp\/v2\/blog-type?post=9449"},{"taxonomy":"featured","embeddable":true,"href":"https:\/\/uk.holman.com\/uk\/wp-json\/wp\/v2\/featured?post=9449"},{"taxonomy":"legacy","embeddable":true,"href":"https:\/\/uk.holman.com\/uk\/wp-json\/wp\/v2\/legacy?post=9449"},{"taxonomy":"topic","embeddable":true,"href":"https:\/\/uk.holman.com\/uk\/wp-json\/wp\/v2\/topic?post=9449"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}