With the news dominated by COVID 19 and the grants and funding available to help through the pandemic, the initiative on electric cars may have been missed or overlooked.
The pandemic has made us be more aware of our environment. Now we want to look at ways that the environment can be protected and rebuilt. We have seen more wildlife during lockdown and many of us have taken to greener ways of travelling around This may be walking, running and cycling. We are enjoying the countryside after the release from lockdown.
Which leads us to the governments initiative to ban anything but electric cars by 2040. This is still in place. Our choice on electric cars is increasing with more and more options to choose from. They are also getting better in that the electric range is increasing all the time.
Green Vehicles Government Incentives
The government currently offers a £3500 incentive off the price for an electric car. Zero emissions cars costing less than £40,000 are also exempt from paying road tax.
There are also significant company car P11D benefits for electric cars registered after 6th April 2020. For electric cars, the Benefit In Kind rate is 0% for the 2020/21 financial year; previously it was 16% for the 2019/2020. This rate increases based on the vehicles mileage range.
If we look at a Nissan leaf this could save you almost £5000 in tax for the 2020/21 tax year.
Look here for full details of the company car tax rates. This is for vehicles registered after 6th April 2020.
Green Vehicles a personal perspective
Why not look into the benefits of an electric car and contribute to improving the environment?
From a personal point of view we are currently on our second electric car and we love them, they are quick reliable and cheap. Both vehicles were supplied by Bowker BMW in Preston. We benefited from the government grant on the car purchase and a grant on the installation of a charging point. So if you want a first hand impression of the electric vehicle connect on LinkedIn.
As a company it is also possible to install charging points at your company premises. Their use could then be charged out to other electric car users. This may provide a modest income but certainly a return on your investment.
For details of tax rates applicable to various cars and how it would affect your personal and company tax bills please contact us for further information [email protected] or call 01942 322767