[Beags]

I'm an IT contractor, and director of a LTD, no employees except me.

I THINK the following is correct ...

- On an EV you get full tax relief, so for a £50,000 EV you save £9,500 in corporation tax! (until you sell it)

- Paying 'Benefit in kind' at 1% lets you drive the car for personal use. That's around £200 a year.

- You might even be able to get 130% 'super deduction' relief for installing charging point.

I saw sometihng on Fully Charged, so looked into it - but not 100% confident - anyone done this?

 

[InspectorGadget]

HMRC currently give 100% first year WDA ( write down allowance). Also applies to the charger too. It applies to 100% electric cars only.

e.g. if you buy an EV6 for £50k, and your company profits that year are also £50k, you’d pay no tax whatsoever because you had no profit. The car is taken as a genuine expense.

Also worth noting is that Ltd company cars are allowed as much personal use as you want. Whereas if you’re a sole trader / partnership you have to declare the personal use portion.

It’s amazing how few people know about it, even accountants. Brilliant way to offset the difference between an EV and an ‘equivalent’ ICE car. Although the cost savings from petrol, road tax etc eventually nullify that difference too.

Hope that helps!

 

[Beags]

HMRC currently give 100% first year WDA ( write down allowance). Also applies to the charger too. It applies to 100% electric cars only.

e.g. if you buy an EV6 for £50k, and your company profits that year are also £50k, you’d pay no tax whatsoever because you had no profit. The car is taken as a genuine expense.

Also worth noting is that Ltd company cars are allowed as much personal use as you want. Whereas if you’re a sole trader / partnership you have to declare the personal use portion.

It’s amazing how few people know about it, even accountants. Brilliant way to offset the difference between an EV and an ‘equivalent’ ICE car. Although the cost savings from petrol, road tax etc eventually nullify that difference too.

Hope that helps!

That really does help, thanks - I needed the reassurance because it sounds too good to be true. My accountants seemed a bit vague about it. Anyway, I've now put in an order! Woohoo!

 

[InspectorGadget]

That really does help, thanks - I needed the reassurance because it sounds too good to be true. My accountants seemed a bit vague about it. Anyway, I've now put in an order! Woohoo!

Claim capital allowances

Claim capital allowances so your business pays less tax when you buy assets - equipment, fixtures, business cars, plant and machinery, annual investment allowance, first year allowances

www.gov.uk

I’m not an accountant, but did my research and then told my accountant, who confirmed it after reading up himself. Hopefully HMRC don’t have any issues with it on the next accounts, but it all seems totally legit. I guess it’s one way for the govt to encourage EV business use, especially as they’re reducing the personal EV grants.