Hello,
Our family car has just died. It was however used mostly by my wife who used it for valid business trips to clients several times a week. I am still trying to make head or tail of the tax implications of an electric replacement company car.
She is a joint director of our non-vat lmt company and a paye employee of it. I am also a director. We are both basic rate tax payers.
Savings of an electric car?
VED/Road tax exempt
BIK 2%of p11D (2020/21) list price (rather than 20%) = approx £100 per year
Capital Allownce is 100% 1st year allowance if bought new for the company. So the cost of the car is treated as a taxable expense? Is this right, even if the car is also used privately?
Or if it’s second hand, 18% single asset pool. So i assume that is that you can claim 18% of the cost in the first year, and 18% of the pool after that.
Battery hire can also be a company expense, as well as a portion of the electricity used to charge the batteries..
I must be reading this wrong? If the company buys a new £20k electric car, it’s total value is treated as taxable expense, and the cost for private use to the employee will be BIK and electricity/fuel used?
really?
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