Tax Efficient Cars.
First-year allowances of 100% are available for expenditure on a new electric car, or a new, unused car with CO2 emissions of not more than 110gm per km driven.
OK this isn’t anything new but this tax break is due to end on 31 March 2013.
When it was first announced as far back as 2002 there were relatively few (attractive) cars that fitted the bill. Now the list is long. Follow this Link and discover more. Remember that the car must be on the ‘new’ list.
For limited companies this is a very efficient way of providing company cars since as well as receiving full tax relief on the capital and running costs the employee benefit is also quite low. Some family run businesses use this as a low cost way of providing cars for their children particularly as insurance costs are so high for youngsters.
For the self employed the tax relief is the same but this could also have a more than beneficial effect on tax credits as the cost of the car reduces taxable income for tax credit purposes. This has a knock on effect for the following year’s claim as well.
So before its too late have a look at this tax break to see if it can work for your business.
To discuss this as well as allowances available on cars and plant please contact us on 0845 365 1000