Want to save more Tax?
Save Tax and Go GREEN
Been thinking about ways to save tax there is something you should know.
If you are the director and owner of a limited company and have been thinking about ways to save tax there is something you should know.
From April 2024 in the new tax year the benefit in kind (BIK) rate for electric cars is 2%. This is remarkably low when compared to petrol or diesel cars.
Furthermore, depending on how the vehicle is purchased, the company may be entitled to some great capital allowance claims. For example, if you buy the new Tesla Model 3 for £40,000 through the company you may be able to save £7,600 of company tax!
As an added extra bonus, you can also get 4p mileage claim for using your electric company car on business journeys.
Is an electric car right for you - speak to your accountant
An added extra bonus
you can also get 4p mileage claim for using your electric company car on business journeys.
On top of the tax benefits there are various other financial incentives out there. With all these sweeteners adding up, it makes sense to look at buying an electric car from April next year.
One thing to keep an eye on is how the BIK percentage changes in coming years as it is set to change. You should also speak to your accountant who will know your personal circumstances and understand if an electric car is right for you.
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Woods Russell Accounting are unlike traditional accounting firms, they strive to be different. The Woods Russell team is dedicated to providing more than just standard accounting services; offering the opportunity to have a Chartered Accountant as an integral part of your business team. Working closely with you, sharing your passion for success, and are committed to helping you achieve your goals. Clients’ success is their daily motivation, and they take pride in seeing tangible results.