The Tax Advantage of Electric Company Vans

The tax position for electric company vans is extremely simple, because there is currently no Benefit in Kind charge at all.

Since April 2021, the taxable benefit for a zero-emission van has been set at £0, even where the van is available for private use. This means an employee can use an electric company van for both work and personal journeys without any personal tax charge.

In short, electric vans are currently one of the simplest and most tax-efficient company vehicle options available, with no Benefit in Kind for employees and generous tax relief available for businesses.

If you are thinking about switching to an electric vehicle through your business, it is important to understand the tax implications. In particular, it is essential to check whether the vehicle you are considering is classed as a van for tax purposes.

If you would like to discuss whether an electric vehicle could work for your business, we would be happy to talk through the options and help you choose the most tax-efficient approach.