FINANCE


A company car that's also tax efficient?


For many years company cars have not been very tax efficient. The benefit in kind on electric cars started at nil but steadily rose to 16% in 2019/20. And when you consider the relatively high price of electric vehicles it has often been considered too expensive to have them in a limited company.


The government has announced plans to ban the sale of new petrol, diesel and hybrid cars from 2035. In order to achieve this they must make electric cars more affordable.


From April 2020 the benefit in kind on electric vehicles is falling to 0%. This low rate is very enticing to anyone considering a new electric company car.


What's more, companies purchasing new and unused electric cars can also claim 100% first year capital allowances reducing corporation tax by 19% of the vehicle’s cost.


Need help with a home charging port? Well there's tax relief available for those too, even at home!


Before getting carried away, be aware that benefit in kind rates on electric vehicles are set to rise to 1% from April 2021 and then 2% from April 2022. After that who knows? But for now it looks like a good time for people looking to buy an electric company car.


Call us now to see how we can help you and your business t: 0115 960 9955 e: enquiries@newtax.co.uk w: newtax.co.uk 470 Hucknall Road • Nottingham • NG5 1FX


business network March 2020 95


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104