Fair EV Tax Breaks for All: End the Car Allowance Inequality!

The Issue

The UK government has championed electric vehicles (EVs) as the future of transport, offering generous tax breaks through the company car Benefit-in-Kind (BIK) scheme. While this policy aims to support the green transition, it has created an unfair system that benefits only a select few, primarily those lucky enough to work for companies offering car schemes. Meanwhile, millions of hardworking people who receive a car allowance or must purchase a vehicle themselves are left to foot the bill for the very same green initiatives their taxes are subsidising.

Under the current rules:

Employees with company EVs enjoy minimal BIK tax rates (as low as 2%) and significant financial savings, even if the vehicle is used mostly for personal trips.
Those receiving car allowances or purchasing vehicles privately receive no tax relief for choosing an EV, even when their vehicle is essential for work.
This effectively penalises individuals who want to go green but don’t have access to a company scheme, while big companies and high earners disproportionately benefit from taxpayer-funded subsidies.
This inequality is at odds with the principle of fairness—something the Labour government has promised to champion. Policies that benefit a select few at the expense of the majority undermine trust and widen the gap between taxpayers and those reaping the rewards of government schemes.

We demand a fair and balanced system:

Allow all taxpayers to benefit from EV tax relief—whether through car allowances, private purchases, or leasing. If the goal is to promote EV adoption, the benefits should apply equally to everyone, not just those with access to company car schemes.
Scrap the BIK subsidy altogether if the government cannot ensure fairness. Public funds should not be used to prop up an unequal system that favours corporate schemes over individual citizens.
It’s time for the Labour government to live up to its promises of fairness and equality. Let’s create a tax system that supports all workers who want to make environmentally friendly choices—not just a privileged few.

Sign this petition to demand fair EV tax policies that work for everyone, not just big corporations. Together, we can call for change and a greener, fairer future.

33

The Issue

The UK government has championed electric vehicles (EVs) as the future of transport, offering generous tax breaks through the company car Benefit-in-Kind (BIK) scheme. While this policy aims to support the green transition, it has created an unfair system that benefits only a select few, primarily those lucky enough to work for companies offering car schemes. Meanwhile, millions of hardworking people who receive a car allowance or must purchase a vehicle themselves are left to foot the bill for the very same green initiatives their taxes are subsidising.

Under the current rules:

Employees with company EVs enjoy minimal BIK tax rates (as low as 2%) and significant financial savings, even if the vehicle is used mostly for personal trips.
Those receiving car allowances or purchasing vehicles privately receive no tax relief for choosing an EV, even when their vehicle is essential for work.
This effectively penalises individuals who want to go green but don’t have access to a company scheme, while big companies and high earners disproportionately benefit from taxpayer-funded subsidies.
This inequality is at odds with the principle of fairness—something the Labour government has promised to champion. Policies that benefit a select few at the expense of the majority undermine trust and widen the gap between taxpayers and those reaping the rewards of government schemes.

We demand a fair and balanced system:

Allow all taxpayers to benefit from EV tax relief—whether through car allowances, private purchases, or leasing. If the goal is to promote EV adoption, the benefits should apply equally to everyone, not just those with access to company car schemes.
Scrap the BIK subsidy altogether if the government cannot ensure fairness. Public funds should not be used to prop up an unequal system that favours corporate schemes over individual citizens.
It’s time for the Labour government to live up to its promises of fairness and equality. Let’s create a tax system that supports all workers who want to make environmentally friendly choices—not just a privileged few.

Sign this petition to demand fair EV tax policies that work for everyone, not just big corporations. Together, we can call for change and a greener, fairer future.

The Decision Makers

Labour Administration
Labour Administration
HM Revenue and Customs, UK
HM Revenue and Customs, UK
United Kingdom Department for Transport
United Kingdom Department for Transport

Petition Updates