Electric Vehicle

Electric Vehicle

  • Is Choosing An Electric Vehicle For My Business/ Company a Good Option:
Are you looking for a way to elevate the financial benefits of your business? Cost-saving is your best answer. Getting an electric vehicle for your business/company will help you in saving energy resources which will ultimately result in benefiting cost control of the company. Getting an Electric vehicle for your business/ company is the best idea as it will help you in fulfilling your corporate and social responsibilities along with providing your company with financial benefits. Some of the perks that your company can enjoy by using electric vehicles/ cars are listed below:
Exemption of taxes like company transport tax.
Exemption in company’s vehicle and excise duty etc
Exemption in Benefit in kind Tax for your company
Saving repair costs for your company vehicles
Saving operational cost for the company
Cheaper transport for company employees

Tax benefits

Most of the employees use to pay themselves for their cars that are being used for the company and ultimately the amount they spend becomes their post-taxed income. An employee gets 32.5% on the dividend by the director in a high rate tax-band.
Whereas, if the company pays for the car it will get CTR (Corporate Tax Relief) that leads to a little amount of Benefits in kind Tax which is quite lower than the 32.5% dividend tax.
An initial investment can result in future benefits for the company such as using electrical vehicles as an effective and efficient travel solution for the company. It would eliminate the fuel expenses as well as the high rate divided taxes.
Government’s new policy (6th April 2020) gives relaxation on company car bills on using an electric company car. The BIK taxation from the year 2020-2023 is very low that helps the employees to get maximum pay.

Government Grants:

The grants provided by the Government of the United Kingdom to the businesses/ companies that use electric vehicles i.e vans, cars, etc for their transport are remarkable. These grants facilitate the business holders in providing better facilities to the employees by enhancing the financial capabilities of the business. They also help in the reduction of the purchase price of the vehicle thus benefiting your company for its initial cost. This helps in reserving the capital allowance of your business. £3,000 reduction is granted provided that the vehicle has gaseous discharges (Carbon dioxide) of under 50g/km and can go in any event to 112km (70 miles) with no outflows by any means.
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