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From 6 April 2020, businesses can claim 100% of the cost of an electric vehicle against the profits of the year of purchase and there are no restrictions on the value of the vehicle.
Usually, If you buy an electric car through the business you can offset part of the cost against your corporation tax bill. With most cars this deduction will be applied gradually over time, however with electric cars you can claim the full deduction in the year you buy it.
Are you self-employed or do you own a limited company or are you employed?
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Salary sacrifice is better way to deliver a tax-efficient benefit to employees, at little or no cost to a given business. In this case, an EV salary sacrifice scheme allows an employee to pay for an electric car each month using their gross salary, before deductions are made for tax and other contributions.
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