There are some fantastic tax benefits for EV's wether your own the vehicle privately or you have one as a company car. Lets take a look at what you could be saving:
P11D/Class 1A National Insurance
The percentage of list price of a company car which is taxed as a benefit is determined by the CO2 emissions of the vehicle. For 2019-20, low emission cars (up to 50g/km) are taxed at 16% of list price, or 20% for diesels. However, there have been significant reductions in this charge from April 2020 with electric-only cars falling to 0% in 2020-21 as well as reductions for electric hybrids depending on their electric-only range.
For example, a VW Passat GTE with CO2 levels of 32 g/km and an electric only range of between 30 and 39 miles would have a benefit rate of 12% in 2020-21, equating to a taxable benefit of approximately £4,300.
Salary sacrifice
Where an employee has a car provided under salary sacrifice, the benefit is valued as the higher of the amount of salary given up or the taxable benefit. However, the optional remuneration rules do not apply if the company car has CO2 emissions of less than 75g/km. Note that this is a different definition of low emissions from that used for capital allowances.
Electric vans
The taxable benefit for having the private use of a zero-emission van reduces from April 2021 to nil.
Please note that for non-electric vans there is no taxable benefit at all if the van is only used for business journeys and ordinary commuting, irrespective of fuel type.
Privately owned electric cars
Where the employee uses his or her own electric car for business journeys, the company can pay the normal tax-free mileage allowance to the individual of 45p per mile for the first 10,000 miles driven in the year, with additional business miles reimbursed at 25p per mile.
Where the employee owns or leases the electric car, they will be entitled to a grant under the Electric Vehicle Homecharge Scheme. This grant covers a 75% contribution towards the cost of one charge point and its installation, up to a maximum of £350 (including VAT) per household/eligible vehicle.