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.

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