Living with an EV: the true cost of ownership for a company car driver

The government may have long since sparked out grants towards private electric cars, but business owners can still make big savings on zero-emission motoring. According to tax expert Christiaan Hansen, a partner at JRW Hogg & Thorburn accountants in southern Scotland: “When you’re looking at tax savings for an owner-managed business, electric vehicles are one of the top opportunities.

A director in the basic-rate band whose VAT-registered business makes less than £50,000 in profits will escape various swathes of VAT, corporation tax and dividend tax to save 32%. And in the other extreme, for directors that sit in the additional band and whose businesses clear more than £250,000 in annual profits, the saving rockets to 58%, making effective payments for the Skoda just £217.

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