Updated company car tax bands 2022/2023: everything you need to know
are now largely frowned upon, with the result that emissions tests have become tougher for them. The latest – mandatory on all new diesels sold from January 2021 – is called Real Driving Emissions Step 2 .
Diesels registered before this date that aren't RDE2-compliant attract a 4% surcharge on their published BIK rate, up to 37%. Remember that if you’re considering a used diesel as your company car. To be clear, all new diesels are RDE2-compliant, meaning the 4% surcharge does not apply. Diesel-electric hybrids are classed as alternatively fuelled vehicles so avoid a surcharge whether they're RDE2-compliant or not.Zero CO2 emissions ensures that electric cars enjoy the lowest BIK rate. In 2020/21, it was actually 0%; but in 2021/22, it rose to 1%; and from 2022/23, it will be 2% until the end of the 2024/25 tax year. Either way, EV drivers pay much less company car tax than others.
There are five BIK rate bands for hybrids. Cars with an electric-only range greater than 130 miles attract a rate of 2% in the 2022/23 tax year . At the other extreme, those with an electric range of fewer than 30 miles fall into the 14% band.The Corsa is a big hit with company car drivers seeking sharp looks, good performance and a low tax bill.
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