Do I need to service my electric car?
Electric Vehicle Tax Incentives in the UK
Introduced in September 2021, the following tax incentives were available in the UK for electric cars used in business:
Plug-in Car Grant (PiCG)
The PiCG is a government grant that provides a discount on the purchase price of eligible electric cars. The grant is deducted from the vehicle’s price at the point of sale, meaning businesses can acquire electric cars at a reduced cost.
100% First-Year Allowance (FYA)
Businesses can claim a 100% FYA on the cost of purchasing qualifying electric cars. This means the full cost of the vehicle can be deducted from taxable profits in the year of purchase, providing significant tax relief.
Reduced Benefit-in-Kind (BIK) Tax
Benefit-in-Kind tax applies to company cars provided to employees for personal use. In the UK, electric cars have lower BIK rates compared to traditional combustion engine vehicles, resulting in reduced tax liability for employees.
Zero Vehicle Excise Duty (VED)
Electric cars are exempt from paying Vehicle Excise Duty, also known as road tax. This exemption applies to both private and company-owned electric cars.
It’s important to note that tax incentives and regulations can change over time, so it’s advisable to consult with a tax professional or visit the official government websites for the most up-to-date information on tax incentives for electric cars in the UK.
Get in Touch
If you’re considering making the switch to electric vehicles for your business, get in touch with Treadfirst today for all your EV tyres and EV MOT needs.