News & Important Dates
Electric car tax benefits
Manufacturers are investing billions into the development of electric cars and hybrid vehicles and as a consequence more businesses are offering these alternative fuel vehicles as part of their benefits package. Tax cuts coming in from April 2020 will make electric vehicles a more attractive option.
From April 2020 all new registered cars will have their emission levels for company car tax purposes determined under a new standard known as WLTP (Worldwide Light vehicles Test Procedure). All electric car drivers will see their rate of company car tax reduce to 0%, assuming their vehicles can travel 130 miles or more on a single charge. There will be a sliding scale up to 14% for vehicles only capable of travelling 30 miles or less on battery power.
Car benefits for full electric (zero emissions) cars are also being reduced to 2% of the list price from April 2020 (and benefits for hybrids also falling).
If you are thinking about changing your company car remember your business may get 100% writing down allowance in the first year. For advice on the tax benefits of an all-electric or hybrid car might provide, please get in touch.