Earlier this month the Government announced that there would be a 1.25 % rise in certain National Insurance contributions from April 2022.
National Insurance is paid by employers, employees and self-employed workers in the UK – except for those on low incomes.
How does this impact fleets?
An employer pays National Insurance on the Benefit In Kind (BIK*) of the driver’s car and therefore the higher the National Insurance, the more an employer will have to pay for a driver of a fleet vehicle……..however, electric vehicles, thanks to a lower BIK will command a lower NI so the price rise will in essence, be balanced out.
*BIK is a calculation based on the value of the vehicle and its emissions.
Another compelling reason to switch fleet vehicles to alternative fuel sooner rather than later.
Contact our team to discuss in detail and you can read more about switching to electric vehicles here.