Car tax benefit in kind (BiK) rates for electric models were dropped from 16 percent to zero in April this year to encourage more drivers to switch to eco-friendly vehicles. The updates ensured thousands of electric car owners paid no BiK tax to use an electric model if they secured the car through a salary sacrifice scheme.
However, the charges will increase to one percent for zero-emission models from 2021 which could see some road users fork out hundreds of extra pounds.
The new one percent charge will be based on income levels and the overall value of the electric car.
This means more expensive vehicles will come with higher costs and could see some drivers pay almost £400 per year.
They say Tesla Model S Performance owners who pay 40 percent income tax could see their BiK shares soar to £32.26 per month.