Do business owners benefit from driving an electric car?
Buying electric vehicles for your business has a lot of advantages.
A charging station, the charging cable and the installation costs. These are investments that you have to make in order to be able to drive an electric vehicle, but these small investments may enable you to reap many benefits. The UK government encourages electric driving and, as a business owner, it may be worth investigating which subsidies you could claim. This is on top of simple running and maintenance costs.
Grant for electric vehicles
Your business could get 35% (up to £3,500) off the price of an electric car or 20% (up to £8,000) off the cost of buying an electric van. Electric vehicles can form part of your fleet or be a company car option. You could get money off the price of a brand new low-emission vehicle through a government grant given to vehicle dealerships and manufacturers. The grant only applies to specific brands of cars, motorcycles, mopeds, vans, taxis, large vans and trucks. You can check the government website to see which ones are included.
Tax incentives for electric vehicles
You can get numerous tax benefits if you own or operate an electric vehicle. This could include exemptions from:
- Company car tax
- Fuel duty
- Fuel benefit charge
- Vehicle excise duty
- Van benefit charge
On top of this, electric vehicles have increased capital allowance benefits (allowing the costs of capital assets to be written off against taxable profits). With the first year having a 100% allowance. This means you could claim the full cost of your company electric vehicle against taxable profits, as long as this is done within the first year of purchase. Find out how you can make a claim on the gov.uk website.
Are you interested in purchasing a charging station for the home or at work? View the options on GreenCharging!