Electric Company Cars

Electric Company Cars


Electric Car ImageNew rules mean electric company cars could save you £'000s!

Plus they can be a cost-efficient employee incentive in a post-COVID cash flow world.

As most business people are aware the 'benefit' of having a company car can quickly become expensive, with tax costs rising to over £1,000 per month for some tax payers with larger diesel cars.

But in April 2020 the rules changed, making fully electric vehicles a very efficient employee and Director benefit! In essence, the change means electric vehicles from Tesla, Audi and others will incur zero tax in 2020/21.

By way of example, we have compared two types of car below.  Firstly the calculations for a Range Rover Sport Diesel against an identically priced Tesla, and then a Golf against a Renault Zoe.  Just see what the impact is!

We believe this has the potential to dramatically change the company car landscape, as well as the country's push towards electric vehicles. And in a post-COVID world, offering employees electric cars as a benefit or added incentive can be a very efficient move for both employer and employee.

Things are not black and white however; to find out more please download our FREE GUIDE which outlines more detail and some other considerations.

Alternatively, if you require assistance or wish to discuss this further, please contact our Tax Director Stephen Oates by email (details below) or on 0141 221 2984.

 

£80k Car,

comparison for higher rate taxpayer

£25k Car,

comparison for higher rate taxpayer

Model

Range Rover Sport – Diesel

Tesla –

Fully Electric

Model

Volkswagen Golf – Diesel

Renault Zoe – Fully Electric

List Price

£80,000

£80,000

List Price

£25,000

£25,000

Co2 emissions

199 g/km

0 g/km

Co2 emissions

140 g/km

0 g/km

BiK percentage

37%

0%

BiK percentage

37%

0%

Total BiK

£29,600

£0

Total BiK

£9,250

£0

Monthly tax cost @ 41%

£1,012

£0

Monthly tax cost @ 41%

£316

£0

 

 

Downloads

Click on any of our downloads below.


To find out more speak to:



Hazel  Burt

Hazel Burt
Partner and Head of Personal Tax
h.burt@frenchduncan.co.uk
01786 451745

Hazel  Burt

Hazel Burt

Partner and Head of Personal Tax

FCCA

LinkedIn Logo


01786 451745

h.burt@frenchduncan.co.uk


Specialisms include...

 

Hazel began her training as a Accountant in 1992 and joined French Duncan in 2012 when they merged with Macfarlane Gray. She has specialised in tax for more than 20 years and heads up the personal tax compliance and consultancy team, managing a varied client base of businesses and private clients.

Hazel has previously served as the Scottish President of the Chartered Association of Certified Accountants for two years and is currently a member of the Scottish committee.

Hazel’s specialisms include capital taxes planning, personal tax planning including residence matters, advising owner-managed businesses, tax investigations and property taxation. She has particular interest in the construction and agricultural sectors.

Hazel was brought up in a family business and has a deep understanding of the issues surrounding owner-managed firms. She draws on this background when advising on commercial and tax matters.

Stephen  Oates

Stephen Oates
Tax Director
S.Oates@frenchduncan.co.uk
0131 225 6366

Stephen  Oates

Stephen Oates

Tax Director

BSc(Hons) CTA

LinkedIn Logo


0131 225 6366

S.Oates@frenchduncan.co.uk


Specialisms include...

Stephen began his career working for a short time at HM Revenue & Customs as an Administrative Officer before joining an independent CA practice as a tax assistant dealing with all tax compliance issues and identifying tax planning opportunities. Three years later, he was appointed as tax manager to a mid-tier accountancy practice, where he remained for six years, before joining French Duncan in 2015 in the same role.

Stephen has gained extensive experience of working for both personal and corporate tax clients which helps him give more comprehensive tax advice. Stephen has gained exposure throughout his career to all aspects of Employment taxes and has added to this expertise through completing numerous Employment tax review and due diligence reports. Stephen has also been heavily involved with giving advice, both technical and compliance based, on all aspects of employment related securities which covers both tax advantaged scheme such as EMI, SIP, CSOP and non-tax advantages schemes.

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