Time for an electric company car?

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RWB_Time_For_An_Electric_Company_Car

Are you thinking of getting a new company car? Or providing cars for your staff? 

Read our latest article below to find out how choosing an electric car will benefit your business costs.. 

Electric cars and tax benefits

The government has announced that there will be a zero P11d benefit for the drivers of electric cars from 2020/21. This is instead of the 2% scale charge that was originally included in Finance Act 2017 to apply for 2020/21. The legislation for the change will be included in Finance Bill 2020 and it is proposed that the benefit will be 1% of list price in 2021/2 and then 2% in 2022/3.

What about hybrids? 

The zero taxable benefit will also apply to hybrid cars emitting no more than 50 grams of CO2 per kilometre with a range using its electric motor of at least 130 miles, but only for cars first registered on or after 6 April 2020. For those registered before 6th April 2020 the scale charge will be 2%.

Rather confusingly there will be two different sets of scale charges from 2020/21, one set relating to those registered before 6 April 2020 and a new lower set of rates for those registered on or after 6 April 2020. However businesses are advised to wait until 6th April 2020 as the P11d scale charge for electric cars is currently 16% of original list price for 2019/20.

Questions? 

Get in touch with us, let us help you! Our team of tax experts can offer business advice and help you maximise your tax efficiency. Contact us today on 0115 964 8888 or email enquiries@rwbca.co.uk.

The views provided in this article are for general information purposes only. Nothing in this article represents advice of any nature whatsoever. Accordingly, RWB CA Limited does not accept any liability or responsibility for the information contained in this article or any decision or other action that may be taken in reliance upon the information contained within it. RWB CA Limited accepts no responsibility for any errors of fact or opinion and assumes no obligation to provide you with any changes to its assumptions.  

Tags: Financial planning Taxation Tax advice Tax planning Business advice VAT Company car HMRC Vehicle Car Electric Electric car Hybrid

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