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Watch the hidden company car tax rises on electric cars (and the tax drop in diesels)

759_Renault_ZOE
Renault Zoe electric car company car tax

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28 August 2013

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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Ralph Morton

Ralph Morton

Ralph Morton is an award-winning journalist and the founder of Business Car Manager (now renamed Business Motoring). Ralph writes extensively about the car and van leasing industry as well as wider fleet and company car issues. A former editor of What Car?, Ralph is a vastly experienced writer and editor and has been writing about the automotive sector for over 35 years.

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