What is the green tax break? - Redbox Financial

What is the green tax break?

The green tax break. Why going electric in your company? Car is a smart move. So are you tired of high tax bills on your company car? It’s time to go electric. In today’s society, the tax system is used not only to raise revenue, but also to encourage certain behaviors and discourage others. . And when it comes to company cars, the government is just giving a green light to those who choose to go electric.

Drivers of electric and low emission cars attacks less heavily compared to those with high emission models. Employers can even provide workplace charging facilities tax free and meet the cost of electricity for employees private journeys. Without triggering a fuel benefit charge, so this means significant tax savings for both employees and employers.

For instance, if you have a 30,000 pound car with emissions of at least 160 grams per kilometer, You should be paying an annual tax bill of 4440, but going electric could save you up to 4,200 in tax each year. And it’s not just the employees who benefit. Employers will also see a lower class one, a national insurance contribution charge.

If the value of the tax will benefit is lower. And it’s not just the tax savings. There’s a fuel benefit too. So normally if an employee provides an employee with fuel for private motor, It would result in a taxable benefit, but there’s no fuel benefit charge when it comes to electricity for electric cars.

This is because HMRC does not consider electricity a fuel, and there are also Class one A N I C savings for the employer. So it is win-win situation. So by getting electric, you’re not only saving taxes, but you also contribute to a greener. What do you think? Please, like, follow and comment does. Just stay informed with my latest content.

And also, please get in touch with me via my website in my profile, redboxfinancial.com. If you’ve got any questions about anything. So did you already know about all this? Do you think it’s a good idea? What, what are your thoughts on switching to electric cars in your company? So just let us know in the comments.