Electric cars continue to boom for directors

Demand for electric cars amongst our business owner client base continues to rise as prices fall. This drop in price on lease deals and RRPs for electric cars coupled with tax breaks means many company directors are going electric.

Company car owners paid a zero benefit-in-kind on certain fully-electric vehicles in 2020-21, compared to as much as 37 percent on vehicles with high CO2 emissions. For the tax year 2021-22 the benefit-in-kind on fully electric vehicles will be just 1% (of the vehicle’s list price, with accessories).

As a result of this premium electric vehicles could save business owners £1000s – compared to traditional vehicles.

You can download our free company car tax guide here to see how much you can save.

The launch of luxury models such as the Mercedes-Benz EQC, Audi E-Tron, together with Porsche and Range Rover hybrid vehicles follow the success of the Tesla Model 3 which is already considered to be a cult company car for British sales executives

Company cars have been deeply unfashionable for more than a decade now. In that time, most business owners have understood that they were better off buying a car personally and then claiming the associated expenses.

 One client of ours saw more than £10,000 knocked off his tax bill because he plumped for the Range Rover hybrid model over the diesel version.

With more e-charging points being installed across the country, improvements to the range of electric engines and a steady fall in the price we are predicting a renaissance of the company car.

If you need advice on the most tax efficient way to procure an electric car speak to our tax team on 0161 980 8788.