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

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Business owners can make hefty tax savings by running an EV through their company. Richard Webber tries it

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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