Advent Day 16 – Electric & Hybrid Cars

The purchase of company cars is also a great way to save more tax- especially if you’re planning on purchasing an electric or hybrid vehicle.

Compared to petrol or diesel cars- the savings in payroll taxes for hybrid and electric vehicles result in you paying less tax as there’s less emissions from the cars and there is also the bonus addition of relief to corporation tax too.

If you need to purchase charge points for your place of work, these are also allowable costs too.

Car lease costs are also allowable business costs and can be put through the business but only half of the VAT can be reclaimed.‍

Digivolve’s Top Tip ‘If you are willing to go electric then the tax savings are significant- if you are looking at Hybrid the emissions % is based on the number of electric miles so try and find one that does over 40 miles for a decent benefit in kind percentage.