Tax Benefits of electric vehicles

Tax Benefits of buying electric vehicle for your business are: 

1. Available on New 100% Electric Vehicles purchased by Ltd Company’s & Sole Traders.
2. Eligible candidates can claim lower of purchase price or €24,000 against trading profits in year of purchase.
3. No taxable BIK on company electric vehicles versus up to 30% on fossil fuel company vehicles.
4. No employers PRSI as no BIK on electric vehicles. A saving of up to 11.05%.
5. Full Capital Allowance Tax saving accomplished in Year 1 of ownership versus fossil fuel vehicles that take 8 years to get this saving.
6. Effectively an employee can benefit from free fuel from their employer due to the provision of electricity through company owned charge points, which does not give rise to a taxable benefit for the employee or director.
7. Half-Price Tolls.
8. Cash saving on tax liability increases your overall cash flow
9. Sole Traders eligible for €24,000 deduction against trade profits taxed at their effective rates
10. Charge stations also eligible for BIK tax relief

Note all the above are subject to qualifying conditions and criteria. So check before you invest in a new electric vehicle if it qualifies and the relevant tax saving

Any queries on the above give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie