When fuel prices first rocketed back in March there must have been a lot of drivers of electric vehicles (EV) very happy with their purchase choice.
However, not surprisingly, the cost of charging electric vehicles at ‘pay as you go’ charge points has, according to research by the RAC, increased by 21% over the past nine months and, depending on domestic tariffs, charging at home will have seen a similar increase with potentially far worse to come.
This does not mean the EV purchase was a bad choice, as the RAC reassured EV owners that their motoring costs were still 50% that of running a petrol car.
When you then factor in the tax benefits of a purchase of an EV you can be reassured that it is still a good decision. For a company purchasing a new fully electric EV the company can offset the full purchase cost against taxable profits in the first year and, if the vehicle is used exclusively for business then the company can also claim 100% of the vat paid on the vehicle.
If you have any questions or would like advice on the tax implications of vehicle purchasing, feel free to get in touch.