A campaigner is demanding urgent car tax changes to slash costs for certain motorists and create a “fairer” system.
A new Parliament petition is calling for personal leaseholders to secure a deduction against tax when securing an electric vehicle.
Those securing an EV under a work salary sacrifice scheme can benefit from fees coming out of their pre-salary tax.
This means owners can save on the amount of income tax they pay and can enjoy an electric model for an affordable piece.
The salary sacrifice schemes have been one of the biggest success stories in getting more electric models out on the street.
However, many businesses do not run schemes with private buyers not benefiting from the discounted tax fees.
Instead, private buyers are forced to splash out sky-high upfront costs if they want to make the transition to electric models. The poll was started by John Wilmot and will run until at least July 4, 2024.
The petition is calling for changes which they believe will help boost demand for models and help the nation’s “net zero ambitions”.
John explained: “Pass legislation that allows electric vehicle (EV) personal leaseholders to claim a deduction against their tax return, resulting in the same post-tax cost as business leases where those using the leased vehicle pay tax at the prevailing Benefit-in-Kind rate.
“Current EV tax advantages primarily benefit businesses and staff using company cars, and salary sacrifice scheme participants.
“A 40 percent tax-paying individual can have an effective cost of 70 percent more on a personal lease vs the cost of a business leasing a car due to personal income taxes and low Benefit-in-Kinds on EVs.
“We believe equalising the effective cost of leasing an EV for personal leaseholders will create a fairer cost structure that encourages EV adoption and helps the UK in its net zero ambitions.”
The cheap benefit-in-kind rates have led to a surge in interest for EVs among businesses with the fleet sector making up the vast majority of EV registrations.
Benefit-in-Kind rates are currently at two percent until 2025 before a gradual one percent per year rise.
The poll needs to receive 10,000 signatures to receive an official reply from the Government.
Meanwhile, the topic could be considered for debate in Parliament if over 100,000 people put their names to the survey.
