First year allowances for business expenditure on electronic cars extended

HMRC’s Agent Update 81 features a self-assessment section containing various tips and guidance on completing clients’ tax returns. It also has Covid-19 updates PAYE and corporation tax news and a reminder to send 2021-22 annual tax on enveloped dwellings returns for clients who own a property on 1 April 2021 by 30 April 2021.

In addition an article confirms that 100% first year allowances for business expenditure on business cars zero emission goods vehicles and equipment for gas refuelling stations will be extended from April 2021 until April 2025. These allowances will be available only for the purchase of new electric cars or cars which have zero carbon dioxide emissions.

Writing down allowances at the main rate (18%) will be available for cars with carbon dioxide emissions not exceeding 50g/km. Those at the special rate (6%) will be available for cars with emissions exceeding 50g/km....