Company car operators and fleet operators who switch to EVs enjoy significant tax gains on Benefit in Kind which can quickly help to offset upfront costs: there’s zero tax on BIK for 2020/21, rising to 1% in 2021/22 and 2% the following year, but these keep EV liabilities well below those for petrol and diesel cars.
There are also capital allowance benefits: any vehicle with CO2 emissions of less than 50g/km is currently eligible for 100% first year capital allowances.
The road tax regime is also sympathetic to EVs – the system is now based on carbon dioxide emissions so fully electric cars are exempt – while there are also incentives around running costs and charging points: electricity provided by employers from business charging facilities is exempt from taxation as a BIK.
And the voucher-based Workplace Charging Scheme (WCS) offers businesses grant support of up to £350 (including VAT) per socket, at 75% of the total cost of the installation up to a maximum of 40 sockets.
Our experts at The Electric Car Store will be happy to take you through these various benefits.