Have You Considered Going Electric???

Electric cars, as well as being good for the environment, can also bring significant tax benefits to businesses and individuals.

From a PERSONAL point of view, from April 2020 there is zero benefit in kind (BIK) if your employer provides you with an electric vehicle as your company car. Going forward, HMRC have announced that the BIK rate for 21/22 will be 1%, and for 22/23 will be 2%.

Additionally, for BIK purposes electricity is not treated as a fuel, so no benefit will arise if you charge your vehicle at your workplace.

From a COMPANY point of view, electric cars are eligible for 100% first year capital allowances, meaning that the full cost of the car will be deducted from your pre-tax profit figure.