Does it make financial sense to switch to electric vehicles?
Does it make financial sense to switch to electric vehicles?
The government is currently incentivising the purchase of electric cars in a number of ways, including tax breaks.
The benefit in kind rate depends on the CO2 emissions of the vehicle. For the tax year 21/22 electric-only cars (0g/km) are charged at 1%. This will rise to 2% for the tax year 22/23. The rate for electric hybrids depends on their electric-only range and the CO2 levels.
In addition, 100% first year capital allowances relief is available for purchases of new, zero emission electric vehicles and vans which means the full cost of the car can be claimed in the year of purchase. Furthermore, electric charging points are covered by the super deduction scheme which offers 130% first year allowance on the investment.
It’s also worth remembering is that there is no road tax to pay on fully electric vehicles and grants are also available towards both the cost of purchasing electric cars for businesses and installing charging stations.
For more information on tax and electric vehicles speak to the Wild & Co team on 01423 222710
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