Tim Palmer examines the impact of the recent tax changes when businesses acquire electric vehicles.
Many businesses all over the UK are now switching to electric cars and vans. The tax benefits for both businesses and employees are now considerable. Employers are also frequently installing electric charging points at their work premises.
Attractive government grants are now available on the purchase of electric vehicles. Significant reductions in the taxable benefits-in-kind (on employees and directors) of electric cars and vans have also recently been made.
For instance, the 2019/20 benefit-in-kind charge for a £70,000 Jaguar I-pace (all-electric car with a 298-mile range) was £11,200; for 2020/21, this was reduced to nil. It has increased slightly to 1% for 2021/22.
