Tax benefits for electric vehicles

The Government is committed to helping increase the number of electric vehicles on the road in order to meet ambitious climate change targets and improve air quality in major cities.

The way vehicle taxation is structured reflects this priority with a range of incentives. Benefits include the introduction of new Benefit in Kind (BIK) bands for EVs from 2020/21. Government grants, National Insurance savings, exemptions from Vehicle Excise Duty (VED) and special Capital Allowances for ultra-low emission cars and fully electric vehicles have been enhanced.

Tax changes from 2020/21

Tax changes which come into effect in 2020/2021 will help to reduce company car tax bills for drivers. From 6th April, fully electric cars will pay no Company Car Tax (CCT) in 2020/21, just 1% in 2021/22 and 2% in 2022/23.

In addition, the government has introduced five new CCT bands for plug-in hybrid cars which emit 1-50g of CO2/km which will further benefit those EVs that can drive furthest with zero tailpipe emissions. There has never been a better time to switch your fleet or business vehicles to electric.

Nissan LEAF

Benefit In Kind and Class 1A National Insurance

Company car Benefit in Kind (BIK) tax rates are set in advance to enable businesses to plan their future outlay on company vehicles and calculate the financial cost to themselves and employees. Like BIK tax, employers’ Class 1A National Insurance contributions, are linked to a car’s CO2 emissions and P11D (purchase cost) value.

Benefit In Kind explained 

Benefits in Kind are benefits which employees receive from their employment but which are not included in their salary or wages. This includes items such as company cars. BIK tax is payable on a company car if it’s available for private use. In nearly all cases this includes journeys between home and work.

How is it calculated?

HM Revenue and Customs calculates that Benefit in Kind is charged based on cash equivalent value of benefit. Typically, employers would submit a P11D form that details any work related, taxable expenses and taxable benefits you’ve received over the tax year, which runs from 6th April – 5th April.

Benefit in Kind may be taxed under PAYE (Pay as you earn) by being offset against personal tax allowances in your PAYE code. If the Benefits in Kind are not included in your tax code for the year when you receive them, the tax may be collected after the end of the tax year.

What is the Benefit in Kind tax on a company car?

Company cars will be categorised into a series of Benefit in Kind bands that are based on a vehicle’s fuel or energy type and its CO2 rating. It’s this band that is weighted as a percentage of the vehicle’s specific P11D value, which would be based on the list price including optional extras, VAT and delivery charges, minus the first year registration fee, annual VED car tax or any Plug-In Car Grant.

In the 2019 / 2020 tax year, a zero emissions vehicle sat in a 16% BIK band bracket. This meant the employee would be liable to pay tax on 16% of the vehicle’s calculated P11D value.

From 6th April 2020, the BIK brackets have been substantially revised. The taxable figure for a zero emissions vehicle now drops to zero. This means there is no BIK tax to pay whatsoever if your company car emits zero tailpipe emissions, while the taxable figure only rises marginally to 1% in 2021 and 2% in 2022, as shown in the table below. The Budget confirmed that the 2% rate will be maintained through to the 2024/25 tax year, providing drivers and employers with company car tax certainty over five financial years.

Further, should your employer decide to install a chargepoint at your home, there is no additional BIK tax to you or them for the privilege. A full breakdown of the Benefit in Kind bands for Ultra Low Emissions Vehicles (ULEV) is provided below.

What if I already drive a company car?

The Benefit in Kind band change is also being taken into consideration retrospectively, meaning that company car drivers that took delivery of their fully electric company car before 6th April 2020 can also benefit from the 0% rule change from 6th April.

Soul EV
Electric Vehicle Approved

The table below shows the new bands and tax rates for tax years 2020 to 2023

For cars first registered from 6 April 2020

CO2 emissions (g/km) Electric range (miles) 2020 – 21 (%) 2021 – 22 (%) 2022 – 23 (%)
0 0 1 2
1 – 50 >130 0 1 2
1 – 50 70 – 129 3 4 5
1 – 50 40 – 69 6 7 8
1 – 50 30 – 39 10 11 12
1 – 50 <30 12 13 14
51 – 54 13 14 15
55 – 59 14 15 16
60 – 64 15 16 17
65 – 69 16 17 18
70 -74 17 18 19
75 – 79 18 19 20
80 – 84 19 20 21
85 – 89 20 21 22
90 – 94 21 22 23
95 – 99 22 23 24
100 – 104 23 24 25
105 – 109 24 25 26
110 – 114 25 26 27
115 – 119 26 27 28
120 – 124 27 28 29
125 – 129 28 29 30
130 – 134 29 30 31
135 -139 30 31 32
140 – 144 31 32 33
145 – 149 32 33 34
150 – 154 33 34 35
155 – 159 34 35 36
160 – 164 35 36 37
165 – 169 36 37 37
170 and above 37 37 37

​For more information, take a look at the HMRC website.

Vehicle Excise Duty

Fully electric cars are exempt from paying Vehicle Excise Duty (VED) to help support drivers who choose the cleanest, most environmentally friendly cars and vans. All cars that emit less than 75g/km CO2 will pay less road tax in the first year, delivering additional cash savings for plug-in hybrids on your company’s fleet. Fully electric cars are exempted from the “expensive car” supplement until 31st March 2025.

Capital allowances

You can claim capitalallowances for your business when you buy vehicles that are used in your business. This allows you to offset the cost of cars you purchase for your business from your profits before you pay tax.

The rate that you can claim for capital allowance on vehicles depends on the CO2 emissions of the car. For new cars brought between April 2015 and April 2018 you can deduct the full value of the car if CO2 emissions are 75g/km or less.

For cars bought after April 2018 the emissions level to qualify for a full deduction is 50g/km and this reduces to zero emissions from April 2021. You can see the full breakdown of all of the new bands of emissions which affect capital allowances here.

Privacy & Terms

Customer Privacy Policy and Notice

1. Introduction

This policy applies to the processing of customer personal data by the Wessex Garages Ltd (referred to as “Wessex Garages Ltd“or “we”).

The purpose of this policy is to provide our current, former and potential customers (jointly referred to as “customers” or you) with a general understanding of:

  • The circumstances under which we collect and process your personal data;
  • The types of personal data we collect;
  • The reasons for collecting your personal data; and
  • How we handle your personal data.
2. Commitment

The processing of your personal data forms an important part of our provision of products and services to you. We appreciate the trust you place in us when providing us with your personal data, and consider your privacy an essential part of the services we offer.

In order to safeguard your personal data while increasing the customer value and offering enhanced and safer driving experiences, we adhere to the following five general principles.

3. Freedom of Choice

Your personal data belongs to you. We strive not to make any assumptions regarding your privacy preferences and aim to design our services so that you can choose whether to share your personal data with us.

4. Balance of Interests

Where the processing of your personal data is necessary for the pursuit of a legitimate interest, and where this interest outweighs the need to protect your privacy, we may process certain personal data without obtaining your express consent. For more information, see the “Consent” section below.

We will assess whether such a legitimate interest exists based on the potential benefits to (including the safety of) our customers and the general public.

5. Proportionality

Wessex Garages Ltd endeavours to only process customer personal data that is adequate, relevant and not excessive in relation to the purpose for which it has been collected.

We aim to anonymise your personal data when a function or service can be achieved with anonymised data. If we combine anonymised or non-personal data with your personal data, it will be treated as personal data for as long as it remains combined.

6. Transparency

On request, Wessex Garages Ltd will provide customers with further information regarding our processing of your personal data, which may include excerpts from internal directives and guidelines.

7. Legal Compliance

It is Wessex Garages policy to comply with the applicable laws, rules and regulations governing privacy and data protection in each and every country where we operate. Where necessary, we will adjust our processing of your personal data as described in this policy to ensure legal compliance.

8. Helpful Definitions

The following terms, used throughout this policy, have the meanings set out in EU Directive 95/46/EC on the protection of individuals with regard to the processing of personal data and on the free movement of such data. Accordingly:

“Data controller” means the natural or legal person, public authority, agency or any other body which alone or jointly with others determines the purposes and means of the processing of personal data;

“Data processor” means a natural or legal person, public authority, agency or any other body which processes personal data on behalf of the controller;

“Personal data” means any information relating to an identified or identifiable natural person ('data subject'); an identifiable person is one who can be identified, directly or indirectly, in particular by reference to an identification number or to one or more factors specific to his physical, physiological, mental, economic, cultural or social identity;

“Processing” means any operation or set of operations which is performed upon personal data, whether or not by automatic means, such as collection, recording, organisation, storage, adaptation or alteration, retrieval, consultation, use, disclosure by transmission, dissemination or otherwise making available, alignment or combination, blocking, erasure or destruction; and

“Sensitive personal data” means personal data revealing racial or ethnic origin, political opinions, religious or philosophical beliefs, trade-union membership, and the processing of data concerning health or sex life.

9. Data Collection

You may provide us with information about you or your vehicle when utilising Wessex Garages services in or outside a vehicle or in other contacts with Wessex Garages, for example through our websites or customer centres (in this context, please note that phone calls may be recorded for quality assurance purposes). We may also obtain such data from our authorised dealers and repairers and other third parties. Such data (“Customer-provided personal data”) may include:

  • Your contact information (name, address, telephone number, email address, etc.);
  • Demographic information (age, marital status, household composition, etc.);
  • Vehicle information (vehicle identification number (VIN), model, date of purchase, service history, etc.);
  • Location data generated by your activities (navigation assistance, search queries, location sharing, etc.); and
  • Data pertaining to your purchase and use of our products and services (customer preferences and settings, purchase history, etc.).
  • Your vehicle will also automatically collect data relating to the vehicle and its surroundings, primarily of a technical nature and not directly related to you as a person. Such data (“Vehicle-recorded data”) is typically connected to the vehicle identification number (VIN) of the vehicle and may therefore be traceable to you. Vehicle-recorded data may include:
  • Safety information (whether airbags or belt tensioners have been triggered, whether the doors and windows are locked or open, etc.);
  • System functionality status (of the engine, throttle, steering, and brakes, etc.);
  • Driving data (vehicle speed, brake and accelerator pedal use, steering wheel movement, etc.);
  • Location data (the position of the vehicle in case of an accident, etc.); and
  • Surroundings data (temperature outside the vehicle, images, etc.).
Information about certain Vehicle-recorded data is also included in the owner’s manual.

We are particularly careful and apply additional measures if and when collecting and processing sensitive personal data, as required by applicable law. To the extent personal identification numbers and credit card numbers are stored by Wessex Garages, such information is also considered sensitive. For avoidance of doubt, it is noted that applicable law may require other kind of data to likewise be treated as sensitive personal data. Applicable law may also limit the possibility to process location data in certain countries.

10. Notice

Where reasonably practical or as required by applicable law, we will, in collecting or registering your personal data, provide you with (i) specific information as to the purposes of the processing of your personal data, (ii) the identity of the data controller, (iii) the identities of any third parties to whom the data may be disclosed and (iv) other information which may be necessary to ensure that you are able to safeguard your rights.

11. Consent

Where reasonably practical or as required by applicable law, we will obtain your consent prior to collecting or using your personal data. The request for your consent will be clear and provide you with a reasonable basis with which to make your decision. Your consent could always be revoked, for example by terminating a particular service or contacting Wessex Garages at the address indicated in the “Information and Access” section below.

The collection and use of Vehicle-recorded data may be necessary in order for (i) technicians to diagnose and rectify faults in vehicles during the service and maintenance of vehicles, (ii) managing Wessex Garages warranty undertakings and (iii) fulfilment of legal requirements.

When collecting or using Vehicle-recorded data for these purposes, and for similar legitimate interests pursued by Wessex Garages, we will generally not seek your consent unless this is deemed necessary in the individual case or required by applicable law.

12. Third Party Applications

You may be able to access applications and other services connected to a vehicle but provided by a third party, which, for example, may require transfer of location data and other Vehicle-recorded data to the third party. Wessex Garages is not responsible for the collection or use of personal data in third party applications or services and recommends that you carefully review the applicable terms and conditions of (and any privacy statement related to) such applications or services prior to use. If you have questions concerning a certain third party’s use of your personal data, please contact the third party directly. Wessex Garages will however carry out necessary due diligence when taking out contracts with third parties to ensure to the best of our ability that they comply with data protection law.

Full details of all third parties can be found in the Wessex Garages Data Inventory published on our website.

13. Data Use

The personal data which Wessex Garages Ltd collects about you and the vehicle will be used:

To provide you with products and services, including to verify your eligibility for certain purchases and services as well as to offer you enhanced offers and experiences;

To inform you of updates to, or changes in, our products and services, including but not limited to changes to our terms and conditions and policies;

To inform you of new products, services and events;

To provide vehicle support and services (warranty service, recall information, etc.);

For product development purposes, for example to improve vehicle performance, quality and safety;

To evaluate and improve our offering to and communication with customers; and

To comply with legal requirements.

For most processing acts, you are able to opt out of our use of your personal data by updating your preferences, terminating a particular service, revoking your consent to the processing by contacting Wessex Garages at the address indicated in the “Information and Access” section below or as otherwise instructed by us. However, and unless otherwise follows from applicable law, you may generally not opt out of the processing of your personal data:

In relation to certain acts of collection and further processing of your Vehicle-recorded data (see the “Consent” section above);

Which we perform in order to send you important notices, such as changes to our terms and conditions and policies or in case of product recalls; and

Which we perform in order to comply with our legal obligations.

14. Retention

We will only retain your personal data for as long as it is necessary to fulfil the purposes outlined in this policy or the purposes of which you have otherwise been informed.

This means that once you have consented to our processing of your personal data, we will retain your data in accordance with the consent given and/or until you revoke your consent. If you have revoked your consent, we may nevertheless retain certain personal data for the period required in order for us to meet our legal obligations and defend ourselves in legal disputes. If we have not obtained your consent to the processing, the data will only be retained for as long as such a period of time as permitted by law.

Full details of retention periods for specific records can be found in the Wessex Garages Data Inventory published on our website.

14. Data Quality

Where we process your personal data, we strive to ensure that it is accurate and up-to-date. We will seek to erase or rectify personal data that is inaccurate or incomplete. For more information regarding your right to ensure the accuracy of your personal data held by us, please see the “Information and Access” section below.

15. Information and Access

As stated in the “Notice” section above, we may provide you with specific information concerning our processing of your personal data when collecting or registering such data.

Once per year you have the right to request, and receive free of charge, information on (i) what personal data relating to you we process, (ii) where the personal data is collected, (iii) the purpose of the processing, and (iv),with which recipients or categories of recipients the personal data is shared. Requests for such information must be made in writing and be personally signed by you, and include information on name, address and, preferably, your e-mail address. You also have the right to request that we rectify any incorrect information we hold for you, the right to request that we erase data held on you (please note exemptions may apply under the GDPR or for legal purposes), the right to data portability and the right to restrict the processing of your information. Requests should be sent to: Data Protection Officer, Wessex Garages Ltd, Pennywell Road, Bristol BS5 0TT. Your requests will be dealt with in a prompt and proper manner. Requests to delete personal data will be subject to any applicable legal requirements. Where the applicable law provides for an administrative fee for complying with such a request, such a fee may be charged by Wessex Garages Ltd.

16. Security

Wessex Garages Ltd strives to implement appropriate technical and organisational measures in order to protect your personal data against accidental or unlawful destruction, accidental loss or alteration, unauthorised disclosure or access and any other unlawful forms of processing. We aim to ensure that the level of security and the measures adopted to protect your personal data are appropriate for the risks presented by the nature and use of your personal data.

17. Data Processing on our Behalf

We restrict access to your personal data to Wessex Garages employees and suppliers who need to use the information in order to process it on our behalf, and who are contractually required to keep your personal data secure and confidential. We aim to choose the option for data processing services that best safeguards the integrity of your personal data towards any third party.

18. Marketing

We will not sell or trade your personal data with third parties unless we have your consent to do so.

We will not share your personal data with third parties for their marketing purposes, unless we have received your consent for such disclosures. If you have provided such consent, but wish to stop receiving marketing materials from a third party, please contact that third party directly.

We may provide you with information regarding new products, services, events or similar marketing activities. If you wish to unsubscribe to a particular e-mail newsletter or similar communication, please follow the instructions in the relevant communication. You may contact your local Wessex Garages dealership to change previously submitted preferences.