In 2019 the treasury announced that electric company car drivers would be exempt from benefit in kind bik tax from april 2020.
Electric car tax relief ireland.
Plug in hybrid electric on first registration.
Another key benefit of buying an electric car relates to tax.
24 000 12 5 in the year of purchase.
Plugin hybrid electric vehicles phev should have co2 emissions circa 60g km.
So for example a car worth 30 000 will cost an employee 2 000 a year in tax for lower rate payers and 5 200 for those on the higher rate.
Assuming the cost is greater than 24 000 the company would get tax relief of 3 000 i e.
New and unused co2 emissions are 50g km or less or car is electric first year allowances.
Hybrid cars do not qualify as electric cars.
The amount of company car tax payable depends on the official value of the car called the p11d the benefit in kind bik rate and the recipient s tax code.
Their value how to apply and additional incentives to help get you plugged in.
Everything you need to know about our electric vehicle grants.
The maximum allowance is restricted to the lower of the cost of the vehicle or 24 000.
You may have made an electric car available to your employee for private use during 2018.
Where this occurred no charge to bik arises in respect of any use by your employee in 2018.
2019 to 2022 extension of exemption.
Electric and alternative fuel vehicles qualify for accelerated capital allowances of 100 in the year they are purchased.
Energy research is vital for building a clean and more secure energy future for ireland.
Reduction in transport costs compared to a comparable.
Direct co2 emission values are used to calculate the vehicle registration tax vrt and annual motor tax bands for vehicles.
New and unused co2 emissions are between 50g km and 110g km.
Description of car what you can claim.
Electric company car tax.
A vehicle powered from a combination of an internal combustion engine and an electric motor.
Motor tax is also cheaper on an electric car at just 120 a year compared with a rate of between 199 and 1 809 for a standard car while toll operators are also running an incentive for.
This electric car tax relief will increase to 1 in 2021 and 2 in 2022 helping businesses to forward plan their finances.
Use the car tax calculator to calculate the car tax due for any electric vehicle or find out more at our car tax microsite.
Different levels of vehicle registration tax vrt reductions apply to these vehicle types.
For the electric cars under 50 000.
Electric and hybrid vehicles.
Battery electric vehicles bev have no tail pipe emissions of co2.
You may choose.
A hybrid with a battery that can be charged by being plugged in to the electricity grid.
The treatment applies to both new and used cars.
