ELECTRIC CARS AND HMRC - ARE THEY TAX DEDUCTIBLE IN THE UK? 

I think you can fit another bottle on your shelf

With corporation tax going up to 25% or marginal rate over 50k - is it better to take relief on the depreciation over 'x' years rather than 19% full first year allowance? Massive thanks for all your excellent videos to date.

As a director of a 1-person UK limited company, am I allowed to purchase an EV company car through my limited company and use it for 100% personal use? And still get the Tax benefits like 100% write off in the first year and the 2% BIK? P.s Great video!

Does BiK only applies to new electric car? I have a Ltd company but I don’t have £60,000 sitting there in my company account. However, I can afford to spend no more than £30,000, so can I buy a used EV get the same benefits?

Hi there. I run a VAT-registered limited company with an annual turnover of £100k. I've been eyeing a Porsche Taycan (EV) worth £100k and I'm really tempted to make the purchase. What do you think? :/ (note: I'm in IT industry and cannot find any expense)

I am struggling to get an answer to this can you help. Sole traders BCP v lease , the BCP contract has no optional final payment only a compulsory “balloon” this allows smaller monthly payments with you ending up owning the car. HMRC guide is a bit vague. but if i use this route rather than outright purchase how much capital allowance is allowed in yr 1? Example : Car 80k Initial payment £30k Monthly payment £500 x 36 Balloon £30k Ideally I need to reduce gross profits by as much as I can ?

Fabulous video 👍👍👍🥂🥳

Thank you for the video - great advise, do you offer Adcock advise for a fee of course .. ?

What about leased EV Car by Limited company ?

Are the lease payments only 18% deductible? vs. The outright 100%? £60k 100% deductible? £1000pcm 18% deductible?

Great video! I’m a director of a small limited company. I currently lease a diesel vehicle. The only thing I claim is mileage. When my lease runs out I want to look at leasing an EV on a BCH agreement. Apart from getting tax relief on corp tax on the monthlies, is there anything else you can claim relief on? I’m not VAT registered. Can I claim for insurance/vehicle maintenance? Can I still claim the 45p per mile for business miles? Would I need to pay BIK?

I am seeing more and more schemes for salary sacrifice. I am in slightly odd position of being a LTD business owner and also being employed. Neither are in the higher rate tax bracket on their own, is there benefit to salary sacrifice vs Thru limited company?

Thank you for the video - really helpful! I wondered if you might be able to elaborate slightly on a certain point about the EV purchase. Assuming I wanted to purchase a £50,000 EV via the limited company and have retained earnings of £30k from year 1 of trading. If I were to purchase this outright during year 2 of trading once the company has earned another £20k (pre tax), does that mean I would only benefit from tax relief for the £20k of profit up to that point? Or would I be able to 'carry forward' the remaining £30k to be offset from any subsequent profits in the same trading year? Essentially, does the company need to earn the full cost of the EV (£50k in this case) in a single trading year prior to corporation tax being applied to gain the full tax benefits? Thank you again for all your videos, they have been really helpful!

Great video , If a limited company buys the electric car fully and claims 100% capital allowance in first year, does the company have to then pay tax on the depreciation amount in second year ( ie is depreciation added in profits). For eg if company bought electric car of 50 K and took that off the profits for capital allowance ( whole 50 k 100%) , do they have to pay tax on depreciation ( tax on approximately 17 K ) in second tax year . And what happens in 3rd and 4rth Year ? Because tax will be due on whatever amount is received when company sells the car as well .Thanks

Hiya, so in a ltd company 100% price of the vechicle can come off your profits to reduce profits so pay less tax, what about the second year.. is it based on the car value in the second/third year?.. great video :-)

Hi, fantastic video! I am an area manager and I've been given a decent ev to drive. I have had to self-fund a home charger. Do you think there is anyway that I can claim tax relief on this, even though I am not a business owner? The car is used 80% business, and 20% personal.

Thanks for the great video! I used to be a full time freelancer and so have my own Ltd, however in recent years I have been working mostly in a 9-5 in a permanent role. I still have my Ltd though and do occasional work on the weekends through it. This means that I only ever have a few k in my business bank account. Is it still beneficial for me to lease a car via my company or will it be more of a headache as only a little money comes through the company?

Question please if you could answer asap Say company corporation tax bill is say 10k based on 50k profit at 19% I buy a 50k tesla 2023 so therefore my profit is zero there no ct tax due 3 years later i sell the tesla for 35k Do I then owe hrmc 19% on the 15k deprecation or 19% on the full sales price? Thanks Josh

If you use hire purchase on a second hand car, how would the tax relief work. I understand you wont get FYA, but does it still come off the value before cooperation tax?

Hi thanks for your excellent video, I am a sole trader for my main job and a higher rate tax payer. I also have a small limited company for buy to let properties. Would it be better to buy an EV as sole trader and claim 90% business use as a higher rate tax payer or would it be better to do it through limited company ? Many thanks

If self employed and bought new ev under rent to buy agreement can i claim 100% in the first year,and assuming that can claim the cost of the car what happens with the interest,or is it advisable to claim the monthly payments as capital allowance.Can i still claim car depreciation on top?many thanks

Hi - Thanks for this video, helpful! I do have a question - here is my context - I own a limited company of 2 directors in the and we're ending month 4 in our existence and doing really well so far. We're trying to be as sensible and tax efficient as possible. And whilst I don't want to take on excessive risk early, i do need to get rid of my diesel guzzler. So I'm very interested in an EV through the company. What I need to understand is when you say BUY what does that specifically mean? I'm actively trying to minimise my corporation tax bill and projecting forward for end of year 1 trading I'm looking at £30 - 40k CT on profit. Does that mean I am limited to 'buying' a car that is total value no greater than 30-40k if i want the 100% CT relief via capital allowances? What if I 'buy' it over 3/4 years? does that not count? In terms of funding a purchase, realistically given short trading time, I will need to take a personal loan, then inject that into the business as a directors loan in order to buy the car. Is there an issue there? I think a video specifically on the mechanics of how to best go about procuring the EV would be a great idea ... I can't be alone in thinking this! Thanks

Hi, great video. If I lease an EV through my Ltd company, is the initial deposit payment on the lease also tax deductible from corp tax? You mentioned in the video about claiming back electricity costs for charging the EV, I charge the EV at home so how would I work out what to claim back and what paper trail is needed as the electricity usage obviously includes charges for the whole house? Do I still need to keep a mileage record for business travel ?

What purchase options are available if you want to offset %100 of the cost of the electric vehicle? Would buying it on a PCP through a dealership allow this?

hey great video, Could you explain or if you have video about how to get money out from my company to cover the home charging cost for an electric car as a director. Can i just transfer the charging cost after milage to my personal account so i can pay the electricity bill or not sure what is the right way as i dont have receipts now if i charge it at home. Thanks

Thanks for the great video again. I'm hoping you may have the answer to the following question... with card readers such as Zettle they take a small fee 1.75% per transaction. In my current bookeeping I only process what enters the business bank account hence do not include the 1.75%. Is this correct or should the total I charge the customer be included and write the 1.75% off as expense. Many thanks!

Thanks for the video, does the limited company pay all the insurance? How is the personal use of insurance get accounted for?

Thanks 👍 is this all still applicable with recent government changes Dec 2022?

Does the car have to be bought in the uk? Say I want a left hand drive Tesla,could I buy in France?

Hi, what about if you lease an EV over say 24-36 months as a sole trader? Are the monthly costs deductible for mileage you use it within 'business miles'? Much appreciated!

Is it possible to buy a used ev and still see some tax benefits?

Hi, I am registered as a Sole Trader and work as a Private Hire taxi driver. I bought a Tesla in December 21 and sold my Mondeo for £4 to use as a deposit. Tesla was £49,950 M3-LR (New). When I submitted my Tax Return i claimed the full £49,950 back as a 100% allowance but now I am thinking it would be better for me to claim 18% back as a CA instead of the 100% because by YR3 My allowance will have ran out and I will be paying 20% of the finance repayments. Or if I sell the Car after 2 years the income that provides will be taxable at 20% (could be as high as £35k) if I don't buy another car. I will seek an Accountants advice but which is better 100% CA or 18%/year over 5 years.

Great video! I currently have a full time job and pay taxes as a higher rate tax payer, via PAYE. This is a temporary role. I am also working part-time as a hackney driver and I will likely continue this, alongside my temporary work. If I purchase an electric vehicle for my hackney job which I declare in my SA100, can I claim the full purchase expense? And will this be offset against the taxes I have already paid via PAYE? Am I right in assuming I will have overpaid tax in this scenario?

Thanks for the informative video. I have a question, if my limited company has 25K and I want to buy a 55k electric car. Can I personally loan 30k to the limited company and carry the losses forwards in years 2/3 until the company has paid me back the loan for the car. Would this still be 100% tax deductible in years 2/3? Thanks

Can you not just sell the Tesla back from the LTD company to yourself for a nominal amount. Not a crazy red flag amount of £1 maybe £5000 or something like that??

I’m self employed using basic accounts, only used for business, is it all tax deductible? Thanks