5 min read
Tax benefits for the driver and the company
- some cars with low CO2 emissions
- energy saving equipment that’s on the energy technology product list, for example certain motors
- water saving equipment that’s on the water efficient technologies product list, for example meters, efficient toilets and taps
- plant and machinery for gas refuelling stations, for example storage tanks, pumps
- gas, biogas and hydrogen refuelling equipment
- new zero-emission goods vehicles
If you lease the vehicle you can claim 50% back on the VAT on the lease payment
- If the car is bought brand new, you can benefit from the enhanced capital allowances mentioned previously, meaning you can deduct the cost from your profits.
- If the car is leased and you’re registered for VAT, you can reclaim 50% of the VAT on the lease payments. When you buy the car you can only claim VAT back if you’re not buying it for personal use (you’re in the car industry for example). You can also reclaim corporation tax or personal tax on the full amount you paid for the lease in the year, subject to VAT.
If you’d like us to look into your circumstances and work out how much tax you could save by going electric, give us a shout. If you end up buying (or leasing) a swanky electric car as a result of this blog – feel free to give us a shout too, humble brags welcome.