Tax Saving: How Much Tax Could You Save By Going Electric?
If the past year has taught us anything, it’s that we should always expect the unexpected. Millions of UK workers were placed on furlough and still may be on the scheme! Adapting to living on 80% of your usual salary relatively quickly can be shocking. It’s no surprise that many of us have been looking to streamline our monthly expenses as much as possible. This cost-cutting makes many think about whether their vehicle is worth the expense. So, how much tax could you be saving?
Now that many employers are calling workers back into the office, we’re receiving an influx of enquiries about electric vehicles. Greener, lower-cost motoring helps keep travel expenses down, so it’s no surprise. Interested in going electric? Let’s take a closer look at how much tax you could save this year:
20% Income Tax
If like the majority of the UK you fall into the standard 20% tax bracket, you’ll be pleasantly surprised to discover that you could save more than £1400 each year with an electric vehicle salary sacrifice scheme. That equates to over £100 each month for simply choosing an electric car over a diesel or petrol-fuelled alternative. It’s a significant saving that can help keep your finances in check while you do your bit for the environment.
Higher Tax Threshold
If you fall into the 40% or 45% tax rate, your tax savings for choosing an electric vehicle increase and could see you saving as much as £3000 per annum. There is plenty of high-end makes and models to choose from, including Audi, BMW and Mercedes. Electric vehicles offer the prestige and quality you’d expect from world-leading brands while also providing some pretty attractive tax-saving perks!
Other Savings Worth Considering
As well as offering tax-saving benefits, electric fleets also combine insurance, breakdown cover and road tax and vehicle maintenance as part of the overall package. Not only does this make electric fleets cost-effective for businesses and their employees, but it also takes away a lot of the stress and work associated with keeping a vehicle on the road and in a roadworthy condition.
If you want to find out more about electric cars, salary sacrifice, the savings involved, and everything in between, sign up for a webinar!
For a free, no-obligation quotation or to discuss the cost-saving benefits of fully embracing EVs, talk to the Fleet Evolution team today on 0300 302 0626. Or, get our guide to the electric revolution below.