Whether you are looking to reduce your environmental impact or save money, there are several great reasons to consider getting an electric car through your company.
What are the tax implications for the business?
One of the biggest differences between electric vehicles (EV) and their petrol counterparts is how they are treated for tax purposes.
In the company, the cost of your brand new EV will be fully tax deductible in the first year (a luxury which is not afforded to cars with CO2 emissions greater than 50g/km), which even extends to those vehicles bought on a finance lease.
Benefits for your employees
One of the main costs to your employees that needs considering when providing company cars is the Benefit in Kind tax. For EVs, this currently sits at 16%, but with huge reductions set for the 2019/20 tax year this will drop to 0%, meaning that you will pay nothing for the benefit of using a company car for personal use. You would also be able to take advantage of the salary sacrifice scheme to save on employer’s and employee’s NI contributions, reclaim the electricity costs at 4 pence per mile, and enjoy paying no road tax or London Congestion Charge.
Leasing an Electric Vehicle
As a VAT registered business, you would be entitled to claim back 50% of the VAT paid on the hire charge if the EV is used for both personal and business use. If the EV is to be used solely for business, then you would be able to claim 100% of the VAT back on the hire charge.
Let us help!
Whether you need help expanding your fleet, or getting started with your first vehicle, Griffin are here to help. With expert knowledge and a friendly team, we are in a great position to help you make considerable savings in the new tax year and do your bit to keep our planet looking good.
To find out more contact Misty Nickells at email@example.com or call 01392 241228.