If you have company cars for yourself or your staff, then it may be worth considering moving over to electric vehicles in the future. In the draft Finance Bill 2017, the government announced its commitment to reduce carbon emissions by encouraging companies to use electric cars where possible.

The latest information outlines further the benefits of reducing CO2 emissions for cars:

• All zero-emission cars will attract a reduced percentage of 0% in 2020/21 and 1% in 2021/22, before returning to the planned 2% rate in 2022/23

• For cars registered before 6 April 2020, the current test procedure will continue to apply, and there are no further changes to percentages previously set for 2020/21. These rates will be frozen at the 2020/21 level for 2021/22 and 2022/23. 

• For cars first registered from 6 April 2020, most rates will reduce by 2% in 2020/21 before returning to planned rates over the following two years, increasing by 1% in 2021/22 and 1% in 2022/23.

This will be particularly beneficial for companies that operate a fleet of vehicles as they can make considerable tax savings.

You should also find out if you or your employee need to pay tax or National Insurance for charging an electric car. If you click on this link you can find out more - Check if you need to pay tax for charging an employee's electric vehicle.

The government has also announced that there is a grant available that helps companies to purchase new low-emission vehicles.  Check with the dealership or manufacturers if the vehicles they are selling are eligible for the grant before making the purchase. The amount of grant available depends on the category of the vehicle, e.g. car, motorcycle, van, etc.

More information about the grants can be found by clicking on this link – Low-emission vehicles eligible for a plug-in grant.

If you would like any more information or advice on financial planning to move your fleet over to low emission vehicles, please do contact us.

You can call 01623 490 120 or email This email address is being protected from spambots. You need JavaScript enabled to view it..