BIK tax is also charged on employer-provided fuel for private use. As electric cars don’t use fuel, there’s no fuel benefit charge at all. Better still, employees using their own electric cars can utilise workplace charging stations without incurring a BIK tax charge, even where the vehicle is used for private use.
To illustrate, an employer provided petrol car in 2021/22, listed at £20,000 with CO2 emissions of (say) 120g/km, would attract BIK tax of £5,600 and a fuel benefit charge of £6,888. An electric car with the same value would attract BIK tax of only £200, and no fuel benefit. A significant difference!