1. Approach
1.1. Understand the rules
1.2. Collect information
1.3. Perform calculations
2. BIK
2.1. Car
2.1.1. Zero emission
2.1.1.1. 0%
2.1.1.1.1. 2% for 2023-24 and 2024-25 (rising 1% pa thereafter until 5% 2027-28)
2.1.2. Emissions no more than 50g/km
2.1.2.1. 2% to 14% for 2023-24 and 2024-25 (rising 1% pa thereafter to range from 5% to 17% in 2027-28)
2.2. Van
2.2.1. Private use insignificant
2.2.1.1. £0 for 2023-24 and 2024-25
2.2.2. Zero emissions
2.2.2.1. £0 for 2023-24 and 2024-25
2.2.3. Other
2.2.3.1. £3,960 for 2023-24 and 2024-25
3. Hire costs
3.1. Emissions more than 50g/km
3.1.1. 15% disallowance (not for businesses using cash basis)
4. Capital allowances
4.1. Car
4.1.1. 100% FYA until 31 March 2025
4.1.1.1. Electric
4.1.1.2. Zero emissions
4.1.2. 18% WDA
4.1.2.1. Emissions 50g/km or less
4.1.3. 6% WDA
4.1.3.1. Emissions >50g/km
4.1.4. No AIA, full-expensing or super-deduction
4.2. Goods vehicle
4.2.1. 100% FYA for zero emissions goods vehicles
4.2.1.1. Zero emissions (typically electric)
4.2.1.2. Exclusions apply
4.2.1.2.1. State aid
4.2.2. AIA (£1m cap)
4.2.2.1. Corporation tax and income tax
4.2.3. Full-expensing
4.2.3.1. 100% FYA for new vans
4.2.3.2. Companies only
4.2.3.3. Expenditure incurred from 1 April 2023
4.2.3.4. Now permanent (2026 end date removed)
4.2.4. 18% WDA
4.3. 100% FYA: Plant for electric vehicle charging point
4.3.1. Corporation tax: until 31 March 2025
4.3.2. Income tax: until 5 April 2025
4.3.3. New and not second hand; and solely for charging electric vehicles
5. VAT
5.1. Purchase of car
5.1.1. No recovery of VAT
5.1.1.1. Some exceptions - eg 100% business use
5.1.1.2. See flowchart in In-Depth guidance
5.1.2. Definition of motor car
5.2. Rental of car
5.2.1. 50% recovery
5.2.2. Exceptions apply in certain circumstances
5.3. Car repairs
5.3.1. Normal rules apply
5.4. Charge an electric car
5.4.1. Sole trader / workplace
5.4.1.1. Recover subject to adjustment where private use
5.5. Van
5.5.1. Recover subject to adjustment where private use