Stockport based accountancy firm, Clarke Nicklin, have been preparing clients for a switch to electric cars following a government announcement on green initiatives.
This week the prime minister announced a ban on the sale of new petrol and diesel cars and vans from 2030, but some hybrids would still be permitted. This is all leading to a ‘green industrial revolution’ to tackle climate change.
Clarke Nicklin have been advising a number of clients who are thinking about changing company cars and considering electric vehicles.
Director at Clarke Nicklin, Gareth Jones, discusses the tax advantages to purchasing and leasing electric cars this short video.
It’s important to be aware of:
- Benefit in Kind rates – 0% current year, then 1% in 2021/22 and 2% in 2022/23 for fully electric
- If purchased, you’re entitled to full corporation tax relief in year 1 (this only applies to new cars)
- Can’t decide whether it’s financially better to purchase or lease? – You need to take into account the deal obtained, your plans for the length of ownership and predicted residual values
- Hybrid cars shouldn’t be ignored either, as long range on electric are still tax efficient
Clarke Nicklin can help businesses to make this decision by advising on the most appropriate.