Tax free electric cars

As a result of recent taxation changes, now may be the perfect time to consider an electric car if you run your own business or are provided a company car by your employer.

For 2020/2021, there will be no benefit in kind (and therefore no income tax or class 1a National Insurance) on providing a pure electric company car. In addition to this a business can claim 100% of rental lease payments or purchase price (via capital allowances) and running costs against corporation tax. 1% and 2% rates have been confirmed for the following two years, so the car should remain tax effective for a number of years.

If you would like to know more about this please contact us.

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