The tax regime for company cars is designed to encourage the use of low-emission vehicles. Many people are starting to realise just how advantageous the electric car benefit in kind legislation has recently become for the individual receiving the car.
In addition, the company receives the 100% FYA for fully electric cars
Given that the driver of an employer-provided electric car suffers a very modest benefit in kind charge (and no car fuel tax for any private motoring), it will make sound tax planning sense for family or owner-managed companies (and others) to purchase such cars through the business rather than in the individual’s own name, especially when one takes into account the unlimited 100% FYAs available until 31 March 2025.
