Enhanced Capital Allowances Provided the car is brand new and purchased by the company, it will qualify for Enhanced Capital Allowances. This is a first-year allowance that lets your company deduct the full cost from profits before tax.
If you are not purchasing the car and are registered for VAT, then you can reclaim 50% of the VAT on lease payments. You can claim 100% if the vehicle is for business use only. If you install a charging point at work, this currently qualifies for the first-year allowance There is also no BiK for installing one at an employee’s home – although the installation is often covered by an energy efficient grant.
Improved infrastructure
Chancellor Rishi Sunak confirmed plans for investment to ensure that EV drivers will never be more than 30 miles from
the nearest fast charging point. He has committed the government to a new £500 million funding pot to be spent during the next five years to expand the UK’s rapid charging network. The fund is primarily designed to
cover the cost of businesses installing charging points on their premises. The Chancellor also announced a £403 million three-year extension to the plug-in car grant but cut the subsidy payment to £2,500 per car, as well as scrapping the pay-out for cars worth more than £50,000.
Government assistance The Scottish Government offers interest- free loans to help with the purchase of new EVs. These cover up to £28,000 of the cost of purchasing a pure electric or
plug-in hybrid. Applications for the loan should be made through the Energy Saving Trust. This loan is in addition to the UK Government’s Plug-In Vehicle Grant mentioned above, which now provides a maximum £2,500 discount at the point of purchase.
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Based in Glasgow, Russell & Russell serves customers in an array of industries, including engineering and
construction, with a focus on owner- managed businesses with annual revenues of up to £30m. For further information, please call 0141 332 6331 or visit
www.russellrussell.co.uk
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