Electric Company Car

port7

Hi I am small business owner (Ltd) and am considering a electric company car. I have spoken to accountant but wouldn't mind 3rd opinion...

* First year allowances where the cost of the vehicle can be claimed against corporation tax.

For example a £50K electric vehicle, I can claim 20% / £10K against corporation tax. So if I paid £30K corporation tax, with the vehicle my corporation tax is now £20K.

I believe this is the case even if the company is paying for the car on finance. And the monthly finance payment even in year 2 and beyond i can claim the interest on the payment against corporation tax.

That £10K saving is profit after tax that is in the company that can be re-invested or taken as dividends.

Is that correct?

Ebe_Scrooge

Not wishing to be dismissive, but if you've already spoken to your accountant then I would suggest he/she is far more qualified than most of us on here to give you the correct information.

Ebe_Scrooge

Now, here's me on a little rant. Most folk on here do their very best to help other members with their questions. If one provides advice, it gives a nice warm fuzzy feeling to be rewarded with a little acknowledgement, a brief "thanks for the info" or a click on the "thanks" button. OP has made 5 posts in 10 years, and has singularly failed to do either of the above on any of their posts. Whatever happened to common courtesy ?

Rant over.

rhysadams

Your accountant is spot on, just don't forget company car tax - its still payable even on an electric vehicle.