Benefit in Kind for Business Deadline Extended to 2030

Excellent news for businesses and company car drivers: the government has extended favourable Benefit in Kind (BiK) tax rates for electric vehicles through to 2030. This extension provides greater certainty for fleet planning and represents a fantastic opportunity to make the switch to electric.

Benefit in Kind (BiK) is a type of employee "perk" like a company car, which is taxable. If you drive a company car, it can be more affordable to drive an EV as you're taxed only 2% instead of the maximum 37%.

Electric vehicles continue to benefit from significantly lower BiK rates compared to petrol and diesel alternatives. For the 2026/27 tax year, pure electric vehicles attract just 2% BiK, which could rise to 5% by 2027/28 and hopefully remain competitive through to 2030. The UK Government had previously said that Employee Car Ownership Schemes (ECOS) would be subject to BiK rules from April 2026 - but this has now been delayed to 2030.

For company car drivers, this translates to substantial tax savings. A higher rate taxpayer choosing an electric vehicle over a conventional petrol model could save thousands of pounds annually in BiK payments.

At Richmond Motor Group, we specialise in helping businesses transition to electric fleets. Our dedicated business centre offers:

• Expert advice on BiK calculations and total cost of ownership
• A wide range of electric and plug-in hybrid vehicles suitable for business use
• Flexible business contract hires and leasing options
• Comprehensive aftersales support and servicing

With BiK rates now locked in until 2030, now is the perfect time to plan your fleet's transition to electric. Not only will you benefit from lower tax rates, but you'll also enjoy reduced running costs, enhanced environmental credentials, and access to the latest automotive technology.

Contact our business team at Richmond Motor Group today to discuss how we can support your company's electric vehicle journey. Visit www.richmondmotorgroup.com or call for a consultation.