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Electric Cars – There’s Never Been (Or Going To Be) A Better Time

2nd December 2019 | Written by In Accountancy | Categories : Client News, News, Tax Advice
Electric Cars – There’s Never Been (Or Going To Be) A Better Time

Electric cars – love them or hate them there are a few facts we cannot deny…

  • They are most definitely better for the environment
  • They cost less to run
  • The ‘fuel’ tax is much, much less
  • And for now at least, they are a very, very tax efficient mode of transport

But not just yet – hold your horses for another few months…

The government has announced that from 20/21 the benefit in kind rate for pure electrical vehicles will be 0%.

Zero per cent! Nothing, nunca, null, nada!

Will my car be eligible?? Here’s the fine print…

This 0% rate will also apply to company cars registered from the 6th April 2020 with emissions from 1-50g/km with a pure electric mile range of 130 miles or more.

The benefit in kind on these vehicles will increase to 1% in 21/22 and 2% in 22/23.

Cars registered before the 6th April 2020 with emissions from 1-50g/km and a pure electric mile range of 130 miles or more will attract a 2% benefit in kind rate in 20/21 and stay the same for the 2 subsequent years.

What other benefits are there??

Well,  c’mere, there’s more, as Jimmy Cricket would have said (am I showing my age, or nationality more by that reference??):

From the 6th April 2018 Companies have also been eligible to claim 1st year allowances on the purchase of vehicles with CO2 emission of less than 50g/km.

Remember that the 1st year allowances do not count towards your annual investment allowance for the year – bonus!

What about charging – Are there any grants available?

And as if that’s not enough, plug-in grants are available through dealerships when purchasing certain vehicles. If the electric vehicle you’re purchasing qualifies for the grant you will receive a discount of 30% off the purchase price up to a maximum of £3,500.

And if your car isn’t eligible for this grant, do not despair as you may still be able to get up to £500 inclusive of VAT off the cost of installing a charger at home through the electric vehicle home charge scheme!!

If you run a company, then there is also a workplace charging scheme available which provides support towards the upfront costs of the purchase and installation of electric vehicle charge points.

Bonus benefit….

And in a funny twist of fate, you can still claim your 45p mileage allowance on the first 10,000 miles of business travel, even in an electric car – brilliant!

What’s not to like about this??

If you would like to discuss anything further please do not hesitate to contact us!