FOR businesses thinking of turning green and going electric, there was some welcome news in Budget 2018.
Chancellor Hammond confirmed that the Government would extend the first-year allowance for electric charge points for four years.
The charge point allowance will now run until March 31, 2023 for corporation tax and April 05, 2023 for income tax purposes.
While this will not affect private individuals, SMEs considering workplace charging facilities will be able to accelerate their tax relief with this allowance.
Meanwhile, single-person LTDs who are based at home with a home-based registered address should talk to their accountants about the possibility of claiming this allowance for installing an electric charge point at home.
Electric vehicle company car tax
However, there was no change in the company car taxation of electric cars. So for 2019/20 zero emission cars will be taxed at 16% of their P11d Value; while from 2020/21 this will drop to 2%.
The CEO of Leeds-based Nexus Vehicle Rental, David Brennan, commented:
“By failing to announce that the 2% tax rate for pure electric company vehicles has been brought forward, the Chancellor has contradicted his commitment to a cleaner future.”
Go here for benefit in kind company car tax for electric vehicles