- Mr A
Free Electric
That's right, No tax on Electric cars
Normally its no to Company Cars, However zero emission car are currently Free of tax
There is no tax to pay in the first year and then it is only 1% year 2 and 3% for year 3
The benefit of an Electric Car
One of the biggest benefits of an Electric car is the running cost, electricity is a fraction of the cost of diesel/petrol.
The environment, running electric car is better for the environment due to the emissions.
What does free mean
Company Cars are taxed on emissions, the lower the emissions the lower the tax bill.
They are taxed via your P11D, Benefit in Kind @ 20% or 40% based on your salary.
The Company is taxed via Employer National Insurance @13.8%