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The government has confirmed the company car benefit-in-kind rates for 2030/31. The percentages used to calculate the company car benefit for all types of company car will increase by one percentage point between the 2029/30 and the 2030/31 tax years, subject to an overall maximum of 40%.
Employers providing company cars and employees who receive them, including, but not limited to, those with zero-emission cars.
The rates apply for the 2030/31 tax year, with rates for earlier tax years having been announced previously.
With many company cars provided on a four-year contract term, the announcement of rates for the 2030/31 tax year provides greater certainty on costs over a full contract term. This will be helpful for employees when choosing a company car. With rates set to increase by one percentage point across all vehicle bands, the rate of increase for Battery Electric Vehicles (BEVs) will slow slightly compared to previous years (in the three prior years, the rate of increase for BEVs was two percentage points in each year). This extends the financial incentive offered for employees making the switch to BEV company cars.