With a wider range of electric cars on the market, the question about holding electric cars within your business is being asked more frequently. As well as benefits to the environment, changing to an electric company car can also leave more money in your pocket.
Here are some of the tax advantages:
- 100% First Year Allowance (FYA) on the cost of the vehicle against profits if the vehicle is purchased. Alternatively the business can claim 100% of the lease payments made during the year.
- 0% benefit in kind for the employee/director from 1st April 2020 (rising 1% each year to 2023)
- 100% FYA on workplace charging points
- Employee can reclaim 4p per business mile from the company tax free for using their home for charging the vehicle.
- Lower running costs
If you would like to discuss this topic in more detail, please get in touch as the team would be happy to help.