28 Dec Go Green and save money as well as the planet!
The UK government recently brought forward their commitment to see the phasing out of new petrol and diesel cars from 2035, to 2030, with further plans to reach net zero emissions by 2050.
One of the ways in which the government are encouraging the take-up of electric cars is the way they are taxed. Both on the individual who receives the car as a benefit and on the company who buys it.
Reduced pollution and, possibly saving some money? Here’s how….
- Cheaper running costs. It’s understood that it will cost an average of £2.00 to run 100 miles in an electric car. This compares with around £13.00 to run a conventionally fuelled car.
- Exemption from vehicle (road) tax
- The ability to charge the vehicles from home. There are grants available for homeowners, businesses and local authorities to install charge points.
- Introduction of green number plates. No congestion charges in London. Drivers could also benefit from local initiatives such as cheaper parking and cost-free entry to zero emission zones.
- Cars with CO2 emissions of less than 50g/km are eligible for 100% first year capital allowances. (ie you can deduct the full purchase price of the vehicle from your company’s pre-tax profits)
- Reduction of benefit in kind on company cars. 1% in 2021/22 and 2% in 2022/23, compared to the top end for petrol and diesel cars currently at 37%. The net cost of an electric car vs. a conventionally fuelled one for a single director company could work out less under certain circumstances even with the significantly higher outlay on an electric car.
- Less noise pollution and reduction in noise for the driver and passengers.