If you’re looking to buy a new car, then you’ve probably also been looking at the option of purchasing a fully electric car. However, don’t get caught out by the common misconception that you will be able to claim back VAT in full on your purchase.
Choosing the right van for your business requires consideration of a lot of things; boot space, emissions and insurance costs. But it's also worth thinking about the tax implications of the van you're looking to buy, particularly if you're purchasing it through a limited company.
While it is true that there is no benefit in kind tax charge on a pool car, it is frequently the case that the term is used loosely and the `pool car’ may not actually be a pool car at all in the taxman’s eyes.
Cars do not qualify for the annual investment allowance, but by choosing a low or zero emission car it is possible to secure a 100% deduction in the year of purchase in the form of a 100% first year allowance.
