759_Renault_ZOE
Renault Zoe electric car company car tax
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Renault Zoe electric car company car tax
Renault Zoe: faces electric car company car tax hike in 2015/15 based on the P11D value. And the P11D value of this car is over £27k!

I WAS highly intrigued by David Wilkins’ car review of the Renault Zoe.

You can read it here: Renault Zoe car review – electric motoring for the price of a Clio.

In other words, you have the choice: traditional Clio with petrol or diesel; or new all-electric Zoe.

Quite tempting I reckon.

However, for company car drivers, it’s not quite that simple.

Because electric car company car tax – like any other car – is paid on the P11D value of the car.

In the case of the Renault Zoe, the P11D includes the cost of the car (without any government grant) plus the cost of the batteries, which have to be leased at £70 a month.

So instead of being £13,650, the P11D is actually more than double that – £27,380 for our Renault Zoe Dynamique Intens car review model.

Now you might think this doesn’t matter as a company car driver: electric car company car tax is currently rated at a 0% company car tax liability.

True.

Audi A3 Sportback
Audi A3 Sportback diesel – company car drivers heading for a company car tax rebate

But only until the 2015/16 tax year, when the electric car will be taxed at 5% – or £274 a year for a 20% tax payer.

That’s a fair old rise from paying nothing.

Drivers of diesel cars, on the other hand, will be heading for a company car tax rebate.

In the tax year 2016/17, the 3% diesel levy goes.

So if you take my current 99g/km Audi A3 1.6 TDI Sport as an example, if you check our company car tax tables, the company car tax payable returns to 2013/14 levels.

In financials, that’s a drop from £759 to £625 a year in company car tax for a 20% tax payer.

And while that’s still more than the Zoe, it’s worth considering if you’re weighing up your next company car.

You’ll also have benefited from lack of range anxiety. My Audi A3 is currently averaging over 48mpg in mixed driving conditions with highs of over 62mpg on individual journeys.

Which, funnily enough, is 500 miles between fill ups on its 10 gallon tank costing me £70 in fuel; the same as the monthly charge for leasing the Zoe’s batteries.


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