UK company car usage has seen its first rise since 2015 driven by the growth in electric company cars says national accountancy group UHY Hacker Young. The number of company cars in the UK jumped to 760,000 last year, up from 720,000 the year before.
The number of electric vehicles provided to employees as company cars jumped 76% to 220,000 last year up from 125,000 the year before. Electric vehicles made up 29% of company cars in 2022/23, up from just 1% in 2018/2019.
Commenting on this, UHY Hacker Young partner, Ian McMahon, said: “There are major government incentives on the use of electric vehicles as company cars. Employees only have to pay a tax charge on 3% of the value of an electric company car’s value per year versus up to 37% of the value of a normal car.
“The huge increase in electric company cars last year shows electric vehicles can keep growing market share if they are properly subsidised.”
McMahon further pointed out that the tax charge will increase by 1% of the EV’s value each year until at least 2028, raising the question as to whether the growth of EV’s as company cars will slow.
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