BIK clarification “excellent news” for manufacturers
The confirmation that diesel hybrids won’t be affected by the 3% Benefit In Kind levy has been greeted by car manufacturers.
The HMRC’s announcement means that models like the Peugeot 3008 HYbrid4 and Volvo’s forthcoming V60 Plug-In model [pictured right] can hit UK roads with the A tax band instead of the pricier and less appealing D band.
Selwyn Cooper, Volvo Car UK’s National Corporate Operations Manager said the clarification equates to a saving of at least £200 per year for company car drivers.
“We are delighted that HMRC has both cleared up the confusion and acknowledged that the rightful banding for diesel hybrids is alongside its petrol hybrid siblings,” he said.
Phil Robson, Fleet Sales Director for Peugeot UK, said the news was “the final piece in the jigsaw” for hybrid motorists: “It means that both individuals and businesses will benefit from the best possible environmental and fiscal position.
“As a company car owner, Peugeot’s HYbrid4 means low fuel costs, low emissions, low BIK and for the company lower Employer National Insurance contributions, alongside an allowance for the company to offset 100% of the list price, in the first year, against its taxable profits.”
The 3008 HYbrid4 [pictured below] delivers 74mpg at CO2 emissions of between 99g/km and 104 g/km along with a full-on electric mode.
Volvo’s V60 Plug-in will return around 150mpg at 49g/km of CO2 when it launches early next year.
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