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There has been a major emphasis placed on the benefits of electric vehicles through the media, government and manufacturers. There are many reasons why a business might want to consider purchasing an electric vehicle the most common of which is by way of remunerating directors.
The government has put a number of tax breaks in place to help businesses and individuals to “go electric” including reducing the car benefit appropriate percentage to nil for 2020/21, being able to claim capital allowances and potentially being able to recover the input VAT.
Additionally there are further cost savings including reducing road tax to nil and of course the government grants available on the initial acquisition of the electric vehicle and installation of charging points.
If you are considering purchasing an electric vehicle why not speak to one of our tax team who can help to explain the potential benefits to your business and how best to structure any agreement to obtain tax relief in the most efficient way.