IF YOU are planning to use your electric car for business, you may find that the government’s multiplicity of incentives makes acquiring a plug-in vehicle highly attractive.
The following incentives are available to business (some of them only for pure electric vehicles others for certain plug-in hybrids):
• 100% First Year Allowance for business owners (available until April 2021): this is claimable for up to 100% of the cost of qualifying low emission and electric cars.
So if you buy a new fully electric car as your company car, your business has the ability to claim a 100% year one deduction for the cost of the vehicle.
The First Year Allowance is applicable to new vehicles only, and those considered new despite previously being used – for example, vehicles registered as a sales or service demonstrator by the manufacturer.
• UK Plug-in Car Grant of £4,500 for cars and 20% of the purchase price for commercial vehicles up to a maximum of £8,000 - click here for more details.
• Reduced Car-Related Employer Class 1A National Insurance Contributions (company cars only); salary sacrifice scheme available to business drivers
• Significantly Reduced BiK Taxation for Company Car Drivers
• No car fuel benefit for company cars, even if recharging your car at work or using a company credit card or company membership to pay for your electricity
• HMRC mileage claim remains the same as petrol/diesel cars (45p/mile for the first 10,000 per year, then 25p/mile)
• Scottish customers can enjoy interest-free loans of up to £35,000 (personal) or up to £100,000 (business)
• 100% discount off London Congestion Charge (discount application required)