Electric cars are now a tax free benefit in kind for the tax year 2020/21!
For personal electric cars provided to employees the benefit in kind rate for the employee is being reduced to being 0% of the list price! That’s right a free benefit for a year! 😀
With a proposed 1% for 2022 and 2% for 2023!
With Capital Allowances also available at 100% it’s looking great for people looking to switch.
It is also looking very attractive to possibly own the electric vehicle personally and claim business mileage as you are currently still allowed the standard 45p per mile for first 10,000 miles and 25p thereafter! With electric miles costing approximately 4p per mile, it could be very cost-effective benefit!
As with any purchase, there are lots of things to consider and any clients should please contact us to discuss before making your decision to review all your options.
If you are thinking of purchasing a vehicle that isn’t electric you can review the possible benefit in kind here.