Tim Palmer reviews the tax benefits which are now attracting so many businesses to switch to the provision of electric vehicles.
Many employers are now providing fully electric company cars for their directors and employees.
The tax position of an employee with private use of a fully electric company car is truly excellent. The taxable benefit is currently 2% x the list price. This is going to remain at 2% for the next two fiscal years, namely 2023/24 and 2024/25.
Example
Harry has a clothes business, Robson Limited. He is a director of the company. Robson Limited recently acquired the Genesis electrified G80 fully electric company car. Assume that the list price is £65,800.
The company claimed 100% capital allowances on the car.
Harry’s taxable benefit in kind for the current fiscal year, 2022/23, is only £65@
