CONSTRUCTION businesses looking to transition to electric vehicles are being reminded they have until 31st March to take advantage of a government tax relief scheme.
The Super Deduction Capital Allowance Scheme was set up following the pandemic to encourage companies to reinvest in their businesses. The purchase of electric vans and installation of EV chargers qualify for the tax savings, enabling businesses to cut their tax bill by up to 25p for every £1 invested.
Rebecca Hansen, MD of Glasgow-based Wyre, said, “Any business thinking of replacing their vans with electric versions should take advantage of this scheme as they can claim 130% capital allowance savings on the vehicle purchase, and the same on the installation of an EV charger whether at home or at work.
“There is a waiting period for some vans so even if it’s not an immediate priority it makes sense to utilise the Capital Allowance Scheme now and receive delivery of the vehicle in a few months’ time.”
Wyre specialises in transitioning organisations from internal combustion engines to electric vehicles. The firm provides a SalaryBoost scheme which allows employees to save up to 40% off the cost of leasing an electric car by reducing part of their salary for a non-cash benefit. The amount is deducted from the employee’s pre-tax payment.
Wyre revealed that it manages the entire transition process including arranging the installation of an EV charger either at home or at work and provides a £500 contribution towards the cost.