Electric cars are not only great for the environment, but they are also great for business owners too,
If you are a company director or shareholder, there are some great incentives to choose an electric car for your next company vehicle. In this post we outline some of the benefits to be had by ditching your gas guzzler and switching to an electric vehicle.
Electric Vehicles From April 2020
Savings for Directors | Savings for Companies
No Benefit In Kind on company electric cars used by employees/ directors
From April 2020, the BiK rate on 100% electric cars will be 0%, reflecting their emissions of 0 g/km. That rate will rise to just 1% in April 2021 and 2% in April 2022. Huge savings for the employee/ director.
100% First year allowances
A business which purchases (or hire purchases) a new electric vehicle, can offset 100% of the cost against the company’s profits in the tax year during which the purchase was made. Reduction in profits = reduction in tax bill.
Save up to 38% income tax on reduction in dividends
A company director and shareholder can reduce his dividends taken from the company as the director will no longer have to personally pay for their own vehicle. The electric vehicle is owned by the company and therefore the company bares all the costs. This potentially saving the director thousands in personal taxes.