Tax Implications of Using a Vehicle for Business – Pt 7
In the final article in this series we look at Electric Cars. From a tax point of view these are an attractive proposition.
VRT on Electric cars is effectively Zero on cars with an original value of circa €35,700 and greatly reduced on more expensive models.
Motor Tax on electric cars is the lowest rate possible which is €120 a year.
BIK does not currently apply to an electric car (this does not include Hybrid’s). where the Original Market Value was less than €50k. Where the Original Market Value was above €50k partial relief is available. Full exemption still applies where the vehicle was first made available to the employee between 10.10.17 and 09.10.18.
For electric cars, a company may opt for the accelerated allowance scheme for energy efficient equipment. This means that 100% of the cost of the car, up to the specified limit of €24,000 (as well as charging facilities provide at the employer’s business premises) can be claimed as an expense for tax for the year in which the car is first provided and used.
This series of articles are for illustrative purposes only and do not constitute professional advice. To get in touch please e-mail email@example.com.