With the free installation of electric vehicle chargers for businesses recently being announced during the Autumn Statement, an energy efficiency consultancy based in South Wales is encouraging companies to take full advantage of this initiative.
Chancellor Philip Hammond announced on Wednesday, 23 November that companies can install electric vehicle charging points and offset costs. There will be a two-year 100 percent first year allowance (FYA) for companies that install electric charge-points, which is already in effect. This allows companies to deduct the cost of the charge-point from their pre-tax profits in that year. The allowance will expire on 31 March 2019 for corporation tax purposes and 5 April 2019 for income tax purposes.
As part of the statement, which is seen as the first major event on the fiscal calendar since the EU referendum, the Chancellor spoke of £390 million being invested in future transport technology. This will include £80 million to install more charging points for ultra-low emission vehicles.
The measure is designed to support the development and installation of recharging equipment for electric vehicles in line with promoting the wider uptake of such vehicles. By making electric charge-points more common, the government hopes that it will encourage the use of cleaner vehicles. This move complements the 100 percent FYA for cars with low carbon dioxide (CO2) emissions and for cars powered by natural gas, biogas and hydrogen.
The initiative applies to businesses of all sizes, but the reality is that it will impact only on businesses with qualifying plant and machinery expenditure above £200,000 – the level of annual investment allowance.
Swansea-based EFT Consult, which specialises in energy consumption assessments for a wide range of businesses, has welcomed the move. It suggests that pushing the electrical vehicle agenda shows a commitment to a green vehicle strategy, which in turn will help encourage low-carbon transport in the long-term.
Chris Jenkins, managing director of EFT Consult, commented:
“It’s a positive move to see government trying to boost the commercial use of electrical vehicles and with the substantial tax incentive, those businesses that qualify should take advantage of the measure.
“Seeing more businesses pursue an electric vehicle infrastructure will help to reduce the environmental impact from transport. This can also provide a real enhancement to those businesses involved in transport themselves, as it can lessen their environmental impact and help with their corporate social responsibility efforts.”
EFT Consult can facilitate the full installation of chargers for its customers to help them take full advantage of the new measure.