Tax stability for drivers required to provide ongoing access to EVs

ACCORDING to a new annual report commissioned by Tusker, most drivers would not choose electric vehicles (EVs) over petrol or diesel withoutstable Benefit in Kind taxation (BiK) rates and the availability of salary sacrifice schemes.

The research shows that without salary sacrifice, more mass-market drivers would not be able to afford the switch to electric.

2,000 in-work drivers from across the UK were surveyed and the results show:

• 60% of drivers said they would go electric or hybrid if salary sacrifice was available, without it, 61% would choose a petrol, diesel or hybrid instead
• 78.2% of the drivers surveyed said that that low BiK rates were the deciding factor in their choice to go electric
• 55% of drivers would not currently choose an EV if BiK rates rise in line with petrol or diesel cars
• 54% are worried about the running costs of a petrol or diesel car with 55% finding them too expensive to run

The report shows how financial incentives offered by Government worked. The zero Road Fund Licence, and the 2% BiK rate applied to EVs since 2019 has accelerated the growth in uptake of zero emission vehicles. Prior to the introduction of favourable BiK rates, 97,565 were sold in the UK in 2019, however in 2020, 205,770 were sold after they came into force. This trend has continued, with more than 592,000 EVs sold so far in 2022.

The order book for 2023 shows that 83% of Tusker’s 21,000 drivers are opting for an EV or hybrid EV for their next vehicle and a further 12% choosing low emission hybrid EVs. It is likely that Tusker’s EV and hybrid orders will increase to nearer 100% by the end of 2023.

Ensuring that EVs are available for all is something Tusker is passionate about, and it works to enable everyone to lower their emissions. More than two-thirds of Tusker drivers are 20% taxpayers and the majority of these are drivers choosing a new car for the first time, moving out of a car that is more than 8 years old and often a high emission vehicle.

Motoring journalist and consumer activist, Quentin Willson has been working with Tusker to highlight the need for mass-market adoption of EV motoring.

He said: “Ordinary drivers face being priced out of affording an EV thanks to high upfront purchase costs or large deposits from traditional finance options. The second-hand EV market is also still too expensive for many, with recent price increases set to stay for the next few years. As things stand we face the risk that the majority of the public will be left out of the transition”