The 2020 EV car tax benefit

MoneySpendingExpert888

I run a LTD company and was advised by my accountant last year that in my position that it would be more beneficial for me to just claim the 45p per mile when doing business miles, so my current car is paid for by me personally (any depreciation comes out of my pocket) and fuel, maintenance is paid for by me.


I know the age old saying of "just go ask your accountant" but just like any other profession there are ones who are clued up and ones that are not, i seem to be the one who is bringing up questions as to the methodology of things when it comes to this area and hence why i am asking for advice here just so i can paint my own picture and bring him what i have found and for him to clarify if it would be a good idea for me to do XYZ or not.


I only just found out that you can claim the full cost of an electric car as a tax deduction in the year that it is bought. so would i be right in saying that if i bought a £30k fully electric car outright with my company that i would be able to deduct £5.7k off my corporation tax which essentially would net the car at £24k.


and because the car would also be used for personal use then i wouldnt be able to claim any VAT off it, which was to be expected.


so with this £24k car i would also be paying £0 (personally) in 2020/2021 to have the benefit of driving it for both work and personal use, i would just pay for my own electric usage? not too sure on maintenance and insurance costs though?


it seems like a no-brainer at the moment because electric car prices will be holding pretty well due to the decline of diesel/petrol and hence the only thing that the company would lose out on would be the depreciation of the vehicle which after 3 years say it is worth £18-20k then it has only cost the company £4-6k for 3 years of vehicle ownership and personally saved myself alot more than that.


is anybody able to clarify if i am getting any of this correct? Thanks :beer: