HMRC releases Benefit-in-kind statistics

The latest benefit-in-kind (BIK) statistics recently published by HM Revenue & Customs (HMRC) show the number of recipients of company car benefit has declined.

There were 720,000 company car drivers in 2020/21 – 80,000 fewer than the 800,000 reported the previous year – despite a zero percentage BIK rate for electric vehicles. There is a steady decline from just under a million in 2015/16.

Fully electric cars accounted for 7% of car benefit recipients.

However, HMRC says that reporting issues brought about by voluntary payrolling, introduced in 2016, may mean there is a "substantial number of individuals" in these years who received company car benefit that (while taxed at payroll) was not properly reported to HMRC. The appropriate tax was collected but car benefit not recorded.

See the Benefit-in-kind statistics commentary on the GOV.UK website.

Also see the BVRLA’s Company Car Campaign, urging the government to continue to support the vital tax regime for electric company cars.