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01254 589799

Gow and Partners Go Electric
Gow and Partners Go Electric

 

Here at Gow and Partners, we believe that electricity is the future!

This was main reasoning behind our company’s recent purchase of an electric car, the benefits of which are astounding, when compared with standard petrol/diesel models.

Further, we are strongly considering investing in an electric charging point, stationed here at Dalton Court, for the use of both staff and clients.

Our team is incredibly knowledgeable about the ins and outs of electric vehicle use for business, so do not hesitate to get in touch on 01254 589799, if you require any advice.

Continue reading to learn more about the many benefits of electric cars, among other energy efficient equipment.

 

 

Environmental Benefits

 

It is no secret that the mass use of petrol/diesel fuelled vehicles is having a detrimental effect on our environment.

One of the global goals for sustainable development, outlined by the United Nations, is affordable and clean energy.

This is tied to the belief that everyone should have access to modern, sustainable, and reliable energy that doesn’t cost the earth.

With this in mind, here is an overview of the various tax incentives in place for making more environmentally friendly, carbon reducing decisions when it comes to your business and how it operates.

 

 

Enhanced Capital Allowances

 

The Enhanced Capital Allowance (a type of first year allowance) is available to businesses to encourage the use of energy and water efficient equipment.

You can claim an ECA for the following equipment:

  1. some cars with low CO2 emissions
  2. energy saving equipment that’s on the energy technology product list, for example certain motors
  3. water saving equipment that’s on the water efficient technologies product list, for example meters, efficient toilets, and taps
  4. plant and machinery for gas refuelling stations, for example storage tanks, pumps
  5. gas, biogas, and hydrogen refuelling equipment
  6. new zero-emission goods vehicles

 

To read more on other types of Capital Allowances, read our blog post on capital allowances for asset investment.

 

 

Tax incentives for Electric Cars

 

The Government recognises the value of the company car market in supporting the transition to zero emission technology.

In light of this, company car drivers that choose an electric vehicle are not liable for paying Benefit-in-Kind (BIK) tax.

Most company car tax rates will be reduced by two percentage points, bringing the percentage down to 0% for all zero emission company cars.

View the table below for the full list of figures, relating to company car Benefit-in-Kind tax rates, for the tax periods 2021/22 to 2024/25.

 

Vehicle
CO2
(g/km)

Electric
range
(miles)

FY 2021-22
%BIK Rate

FY 2022/23 to 2024/25
%BIK Rate

Non-
RDE2
Diesel**

Petrol,
Electric,
RDE2
Diesel**

Non-
RDE2
Diesel**

Petrol,
Electric,
RDE2
Diesel**

Non-
RDE2
Diesel**

0

 

 

1

 

2

 

1-50

130+

 

1

 

2

 

1-50

70-129

 

4

 

5

 

1-50

40-69

 

7

 

8

 

1-50

30-39

 

11

 

12

 

1-50

<30

 

13

 

14

 

51-54

 

 

14

 

15

 

55-59

 

 

15

 

16

 

60-64

 

 

16

 

17

 

65-69

 

 

17

 

18

 

70-74

 

 

18

 

19

 

75-79

 

22

19

23

20

24

80-84

 

23

20

24

21

25

85-89

 

24

21

25

22

26

90-94

 

25

22

26

23

27

95-99

 

26

23

27

24

28

100-104

 

27

24

28

25

29

105-109

 

28

25

29

26

30

110-114

 

29

26

30

27

31

115-119

 

30

27

31

28

32

120-124

 

31

28

32

29

33

125-129

 

32

29

33

30

34

130-134

 

33

30

34

31

35

135-139

 

34

31

35

32

36

140-144

 

35

32

36

33

37

145-149

 

36

33

37

34

37

150-154

 

37

34

37

35

37

155-159

 

37

35

37

36

37

160-164

 

37

36

37

37

37

165-169

 

37

37

37

37

37

170+

 

37

37

37

37

37

 

 

Discounted Electric Cars

 

Certain low-emission vehicles are eligible for a plug-in grant.

This is a grant that the government gives to car dealerships/manufacturers, which gives you a discount on the purchase price of a brand new eligible plug-in vehicle.

You do not need to do anything if you want to buy one of these vehicles- the dealer will include the value of the grant in the vehicle’s price.

To be eligible for the grant, cars must cost less than £50,000. This is the recommended retail price (RRP), and includes VAT and delivery fees.

The grant will pay for 35% of the purchase price for approved cars, up to a maximum of £3,000.

Other vehicles (vans, large vans/trucks, taxis, mopeds, and motorcycles) are also eligible for the grant, though the figures do differ.

Click here for the full list of specific low-emission vehicles eligible for the plug-in grant.

You can also get up to £350 (including VAT) off the cost of installing a charger at home through the Electric Vehicle Homecharge Scheme.

 

 

Contact Gow and Partners

 

At Gow & Partners, we are eager and excited to see business transition to electric energy. With that being said, we understand that this is a big leap to make for any business, which is why we are always here to support and advise you.

Get in touch with the Gow team today! Simply call 01254 589799.

Alternatively, you can fill in a contact form, or send us an email at info@gowandpartners.co.uk.