Buying an electric vehicle

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Buying an electric vehicle by Mind Map: Buying an electric vehicle

1. [Approach](https://library.croneri.co.uk/po-heading-id_KIyqYoLX6Ea-icm6QV91Kg)

1.1. Understand the rules

1.2. Collect information

1.3. Perform calculations

2. BIK

2.1. [Car](https://library.croneri.co.uk/po-heading-id_G8oIm0iD0kGURSNnIc3jwQ)

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)](https://library.croneri.co.uk/cch_uk/trto/3-400)

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)](https://library.croneri.co.uk/cch_uk/trto/3-400)

2.2. [Van](https://library.croneri.co.uk/po-heading-id_cvlMfjQ-dkiWFvh2bROgAQ)

2.2.1. [Private use insignificant](https://library.croneri.co.uk/cch_uk/btr/416-262)

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. Capital allowances

3.1. [Car](https://library.croneri.co.uk/po-heading-id_0DY9qRUCak6KEMxGspyUXg)

3.1.1. 100% FYA until 31 March 2025

3.1.1.1. Electric

3.1.1.2. Zero emissions

3.1.2. 18% WDA

3.1.2.1. Emissions 50g/km or less

3.1.3. 6% WDA

3.1.3.1. Emissions >50g/km

3.1.4. No AIA, full-expensing or super-deduction

3.2. [Goods vehicle](https://library.croneri.co.uk/po-heading-id_T4Acf6vsG0m2Hdf5X8a9eQ)

3.2.1. [100% FYA for zero emissions goods vehicles](https://library.croneri.co.uk/cch_uk/btr/237-460)

3.2.1.1. Zero emissions (typically electric)

3.2.1.2. Exclusions apply

3.2.1.2.1. State aid

3.2.2. [AIA (£1m cap)](https://library.croneri.co.uk/cch_uk/btr/236-400)

3.2.2.1. Corporation tax and income tax

3.2.3. [Full-expensing](https://library.croneri.co.uk/cch_uk/btr/237-618)

3.2.3.1. 100% FYA for new vans

3.2.3.2. Companies only

3.2.3.3. Expenditure incurred from 1 April 2023

3.2.3.4. Now permanent (2026 end date removed)

3.2.4. [18% WDA](https://library.croneri.co.uk/cch_uk/btr/238-050)

3.3. [100% FYA: Plant for electric vehicle charging point](https://library.croneri.co.uk/cch_uk/btr/237-525)

3.3.1. Corporation tax: until 31 March 2025

3.3.2. Income tax: until 5 April 2025

3.3.3. New and not second hand; and solely for charging electric vehicles

4. [VAT](https://library.croneri.co.uk/po-heading-id_7lW010hM4U-aixOgF99mww)

4.1. Purchase of car

4.1.1. No recovery of VAT

4.1.1.1. [Some exceptions - eg 100% business use](https://library.croneri.co.uk/cch_uk/bvr/19-281)

4.1.1.2. [See flowchart in In-Depth guidance](https://library.croneri.co.uk/cch_uk/bvr/19-296)

4.1.2. [Definition of motor car](https://library.croneri.co.uk/cch_uk/bvr/19-263)

4.2. Rental of car

4.2.1. [50% recovery](https://library.croneri.co.uk/cch_uk/bvr/19-300)

4.2.2. [Exceptions apply in certain circumstances](https://library.croneri.co.uk/cch_uk/bvr/19-300)

4.3. Car repairs

4.3.1. [Normal rules apply](https://library.croneri.co.uk/cch_uk/bvr/19-304)

4.4. [Charge an electric car](https://library.croneri.co.uk/cch_uk/bvr/19-324)

4.4.1. Sole trader / workplace

4.4.1.1. [Recover subject to adjustment where private use](https://library.croneri.co.uk/cch_uk/bvr/19-120)

4.5. [Van](https://library.croneri.co.uk/cch_uk/bvr/19-260)

4.5.1. [Recover subject to adjustment where private use](https://library.croneri.co.uk/cch_uk/bvr/19-120)

5. [Hire costs](https://library.croneri.co.uk/po-heading-id_ipJe6HsQYkCh26UvxN8cqA)

5.1. Emissions more than 50g/km

5.1.1. [15% disallowance (not for businesses using cash basis)](https://library.croneri.co.uk/cch_uk/btr/212-025)